A directive to significantly reduce staffing across state-owned enterprises marks one of the most stringent cost-control measures introduced in recent years, as authorities seek to contain expenditure and improve operational efficiency.
The Ministry of Finance and Public Enterprises has instructed the Privatisation and Corporatisation Board to implement a 33 percent reduction in employees across government-owned companies. The directive, issued in a letter sent to PCB President Mohamed Anas, forms part of a broader effort to strengthen financial management, improve governance, and ensure the long-term sustainability of state-owned enterprises.
According to the ministry, the workforce reduction is intended to lower operational costs while encouraging more efficient use of human resources. The directive also calls for improvements in recruitment practices, with a stronger emphasis on merit-based hiring to ensure that positions are filled by the most suitable candidates.
The latest instruction builds on a series of measures introduced earlier in April, when the PCB issued a circular requiring companies to curb expenditure. These measures included limiting spending on salaries and allowances, suspending promotions unless essential, and halting new recruitment unless deemed critical for operations. Companies were also instructed to reduce overtime, cancel non-essential events, and minimise travel and other discretionary expenses.
Further guidance issued by the ministry emphasises tighter control over spending, including avoiding unnecessary operational costs and prioritising essential activities. Companies have also been encouraged to rely more on remote alternatives, such as online meetings and training, while reducing reliance on international travel.
The ministry stated that these measures are necessary to align the operations of state-owned enterprises with national fiscal and operational policies. It has also tasked the PCB with overseeing implementation and monitoring compliance, with companies expected to report on progress.
The policy shift comes amid broader economic pressures linked to global developments, including rising fuel costs and disruptions to travel flows. These factors have prompted calls from economic analysts for stronger fiscal discipline, with state-owned enterprises seen as a key area for expenditure control.
The move also follows earlier criticism over hiring practices at some state-owned companies, where recruitment activity had continued despite growing fiscal concerns. The new directive signals a shift towards stricter oversight of staffing and expenditure as authorities attempt to manage financial risks facing the public sector.
