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Public sector institutional reforms to strengthen governance architecture, administrative efficiency

January 05, 2026

Abdul Ghani

The government has introduced a comprehensive set of public sector institutional reforms aimed at strengthening governance architecture, improving administrative efficiency and enhancing the overall capacity of state institutions, according to the Prime Minister’s Economic Governance Reforms (PM-EGR) document.

The reform framework identifies structural weaknesses within public institutions as a major constraint to effective governance and policy implementation. To address these challenges, the government has outlined measures focused on reorganising institutional frameworks, clarifying mandates and strengthening coordination among ministries, departments and attached bodies.

According to the document, a central objective of the reforms is to reduce fragmentation within the public sector by clearly defining roles and responsibilities of government entities. Overlapping mandates and unclear lines of authority have historically weakened accountability and slowed decision-making. The new framework seeks to establish clearer institutional hierarchies and strengthen coordination mechanisms to facilitate smoother policy execution.

The reforms also place strong emphasis on improving organisational effectiveness through structural rationalisation. This includes reviewing existing institutional arrangements, streamlining functions and eliminating duplication across government entities. By rationalising structures and aligning them with policy priorities, the government aims to enhance operational efficiency and improve service delivery outcomes.

Another key focus of the reform agenda is strengthening institutional capacity through improved governance systems. The document highlights the need to modernise administrative processes, enhance internal management systems and promote a performance-oriented culture within public institutions. These measures are intended to improve responsiveness, accountability and consistency in government operations.

The reform framework further underscores the importance of strengthening coordination mechanisms among ministries and departments. Improved inter-agency collaboration is seen as essential for addressing cross-cutting policy challenges and ensuring coherent implementation of government programmes. Enhanced coordination structures are expected to reduce duplication of efforts and improve the effectiveness of public service delivery.

In addition, the reforms emphasise the role of leadership and management in driving institutional change. Strengthening leadership capacity at senior and mid-management levels is identified as a key requirement for successful reform implementation. Training programmes and capacity-building initiatives are planned to equip public officials with the skills needed to manage complex administrative and policy challenges.

The document also highlights the importance of embedding accountability within institutional frameworks. Clear performance benchmarks, monitoring mechanisms and evaluation systems are proposed to ensure that institutions remain focused on results and deliver measurable outcomes.

According to the Finance Division, strengthening institutional architecture is essential for improving governance effectiveness and supporting sustainable economic development. By modernising structures, enhancing coordination and building institutional capacity, the reform agenda aims to create a more responsive, efficient and accountable public sector capable of meeting the country’s long-term development objectives.

Credit: INP-WealthPk