Punjab govt moves to scrap permanent posts across departments

ISLAMABAD: The Punjab government has decided to move away from permanent recruitment in public institutions and instead meet future staffing needs through temporary hiring on lump-sum daily wages, according to an official process launched ahead of the 2026-27 provincial budget.

The move has formally begun in the education sector and comes as the government seeks to address a severe financial crisis. In an earlier step, vacant posts in grades 1 to 16 had already been abolished. The latest phase is broader and covers vacant positions from grades 1 to 22 in all provincial departments, semi-autonomous bodies and corporations.

The government had already abolished 150,000 vacant posts in nine departments. That exercise has now been extended to all institutions, with the Punjab Finance Ministry issuing formal circulars and data forms to departmental heads and asking for immediate details of all unfilled permanent positions.

The new circular seeks complete information on vacant permanent posts across a range of departments, including health, revenue, transport, the Board of Revenue, anti-corruption, agriculture and works. The purpose, is to prepare for their complete abolition.

The development has caused concern among government employees and organisations, including the All Government Employees Grand Alliance (AGEGA), APCA and teachers' bodies.

Budget-linked restructuring

No salary allocation will be made in the upcoming budget for vacant posts because of financial constraints. Instead, departments are expected to rely on temporary appointments under a lump-sum daily wage arrangement to meet future manpower requirements.

This marks a second and more significant phase in the government's restructuring of public sector hiring. The data collection exercise is tied to preparations for the 2026-27 provincial budget, with all departments being asked to submit records of vacant posts from grades 1 through 22.

Based on the information being collected, all vacant posts in those grades are expected to be abolished next week.

The decision represents an expansion of an earlier policy under which only vacant positions in lower grades had been removed. It now covers the full range of posts across provincial institutions, semi-autonomous bodies and corporations.

The government plans to replace the traditional model of permanent recruitment with hiring on daily wages paid through lump-sum salaries, beginning with the education sector and extending to other departments as part of the wider budget exercise.