Government Orders Restructuring of Federal IT Organizations

The Ministry of Information Technology & Telecommunication (MoITT) has issued a memo for the immediate restructuring and rightsizing of different federal IT organizations. The memo follows recommendations from the Institutional Reforms Committee (IRC) to optimize efficiency and reduce government dependency.
A memo (No. 5-8/2024/Coord) was addressed to the CEOs and Managing Directors of major IT entities, including the Universal Service Fund (USF), Ignite, Pakistan Software Export Board (PSEB), National Information Technology Board (NITB), Telecom Foundation (TF), National Telecommunication Corporation (NTC), Virtual University of Pakistan, and the Chairman of the ECAC. It outlined the following directives:
- Telecom Foundation (TF): The Telecom Foundation must be shut down, and its subsidiary organizations should be privatized.
- National Information Technology Board (NITB): NITB will undergo massive restructuring to form a leaner organization that partners with private service providers and adopts an outsourced model.
- Pakistan Software Export Board (PSEB): PSEB is directed to boost its revenues to at least Rs. 1 billion, reducing its reliance on government funds. However, occasional PSDP funds will still be allowed.
- Virtual University, Universal Service Fund, and ECAC: These entities won’t undergo any significant changes.
- Ignite: Ignite will continue to operate but is expected to allow private sector intervention once market failures are managed gradually.
The memo demanded an implementation plan from the respective organizations in the form of a 5-6 slide presentation. Sources suggest that the government wants this restructuring process to be treated as a top priority to ensure quick implementation.
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