The federal government has started abolishing up to 60 percent vacant positions across federal ministries and attached departments.
The move follows commitments made with the International Monetary Fund (IMF) to reduce public expenditure.
The government is also facing pressure over electricity sector circular debt ahead of the next review with the IMF in coming weeks.
Prime Minister Shehbaz Sharif has directed his economic team to prepare an alternative plan for rising electricity prices.
During the upcoming IMF talks, Pakistan is expected to present progress on agreed structural reforms and discuss circular debt targets for the electricity and gas sectors.
If the review is completed successfully, Pakistan is expected to receive around $1 billion under the next installment of the loan program, along with an additional $200 million for climate resilience.
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