Demise of Pakistan’s Public Sector

It is a grave irony that once thought to be the foundation of governance , service provision and policymaking, Pakistan’s public sector is currently under attack by political forces. The government has implemented a number of policies in recent months that seem less like reform and more like a planned attack on its own workers – the state machine – the bureaucracy.

By tampering with pensionary benefits, altering service structures, and now floating a humiliating plan to forcibly retire employees after 50 years of age, the state is dismantling the very foundations of its civil service. This is not reform—it is betrayal. It is a violation of the social contract that has bound generations of Pakistanis to public service under the promise of security, dignity, and stability. And it risks not only the livelihoods of hundreds of thousands of employees but also the credibility of the state itself. 

When the Civil Servants Act of 1973 was enacted, it was designed to guarantee job security, pensions, and a structured career path. These were not perks; they were the terms of employment. Civil servants accepted modest salaries and limited opportunities in exchange for stability and the assurance that their decades of service would not leave them destitute in old age.

Today, that contract is being shredded. Pensionary benefits are being curtailed, contributory pension schemes are being introduced, and service structures are being manipulated to block promotions. The latest proposal—to limit service to 50 years and prepare lists for forced retirements—adds insult to injury. It is not only unconstitutional but also deeply humiliating for employees who have dedicated their lives to the state. 

The government has attempted to justify these draconian measures by pointing to the International Monetary Fund. Yet the IMF itself has distanced from such specific regulations. This raises a troubling question: if the IMF is not demanding these changes, why is the government so eager to impose them?

The answer lies in political expediency. Instead of cutting its own extravagance—lavish perks for the ruling elite, oversized cabinets, and wasteful expenditures—the government has chosen the path of least resistance: targeting its employees. It is easier to squeeze teachers, clerks, and mid-level officers than to confront entrenched privileges at the top. 

What makes this policy even more unjust is its selective application. The armed forces and judiciary remain untouched, their pensions and service structures preserved. Only civilian employees—teachers, health workers, clerks, and administrators—are being asked to sacrifice.

This two-tier system of privilege not only deepens inequality but also breeds resentment. It sends a clear message: some institutions are untouchable, while others are expendable. Such selective targeting undermines the very idea of fairness in governance. 

For many civil servants, the prospect of promotion is already a distant dream. It is not uncommon for employees to retire after 30 or 40 years of service without a single promotion.

To now threaten them with forced retirement at 50 is to compound decades of stagnation with outright injustice. This is not merely a bureaucratic adjustment; it is a human tragedy. Families that depend on pensions for survival face financial ruin. Employees who joined service under one set of rules are being discarded under another. It is a violation not just of law but of basic decency. 

Unsurprisingly, resistance is mounting. The All Government Employees Grand Alliance at the federal level, along with provincial alliances in Sindh, Punjab, and Khyber Pakhtunkhwa, have already begun mobilizing. Protests are spreading across ministries and departments. The government would be wise to heed these warning signs. When bread and butter are snatched away, people do not remain silent. If these policies are not withdrawn, the resistance could escalate into widespread unrest. The state risks igniting a confrontation it cannot easily contain. 

The implications extend beyond current employees. For the youth of Pakistan, who spend years preparing for competitive exams like CSS and PMS, the dismantling of pensions and job security is a devastating blow. Why should talented graduates dedicate themselves to public service if the rewards are insecurity and humiliation?

The private sector cannot absorb the flood of graduates entering the job market each year. If the public sector is dismantled, the result will be mass unemployment, frustration, and disillusionment. Worse still, it may trigger a brain drain, as talented youth seek opportunities abroad rather than serve a state that offers them no future. 

The government’s narrative of fiscal necessity does not hold up to scrutiny. This is not about saving money; it is about shifting burdens. Instead of reforming its own expenditures, the state is dismantling the livelihoods of its employees.

 Instead of strengthening the public sector, it is hollowing it out. The result will not be efficiency but collapse. A weakened public sector means weaker governance, poorer service delivery, and deeper inequality. It is a recipe for disaster. 

It is not too late to reverse course. The government must withdraw these anti-employee policies and pursue genuine reform. That means cutting non-developmental expenditures and elite perks, rationalizing ministries and departments without targeting employees, strengthening rather than dismantling the pension system, and ensuring fair promotions and career progression.

Above all, it means honoring the social contract that has bound generations of Pakistanis to public service.  The government’s assault on public sector employees is unconstitutional, unjust, and socially destructive. It violates the terms under which employees joined service, targets the vulnerable while sparing the powerful, and risks igniting widespread unrest.

 If these policies persist, the result will be the demise of Pakistan’s public sector—a collapse that will not only devastate employees but also undermine the state’s ability to govern. For the youth, it will mean disillusionment and despair. For the country, it will mean instability and decline.The choice before the government is clear: withdraw these draconian measures and pursue genuine reform, or persist on this path and face the consequences of a manufactured disaster.

Public sector employees across Pakistan are in a state of shock and deep uncertainty about their future. After forced retirement, they will be left with no viable options for re-employment except in the already overburdened and low-paying private sector, where opportunities are scarce due to the growing youth bulge. Many will be compelled to take up odd jobs simply to feed and support their families. In effect, these employees are being abandoned at a stage of life when stability and dignity should be safeguarded. Such draconian measures risk not only pushing loyal servants of the state into despair but also undermining the very foundations of public service in Pakistan.