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The ruling Pakistan People's Party has authorised Prime Minister Yousuf Raza Gilani to dissolve his jumbo cabinet and form a smaller council of ministers amid demands for political reforms from the opposition and international donors.
The PPP's central executive committee gave Gilani the go-ahead to dissolve the cabinet during a meeting chaired by party chief and President Asif Ali Zardari at the presidency.
The party's leadership authorised Gilani to appoint a smaller cabinet with fewer ministers who have "a reputation of integrity, competence and efficiency," said a statement issued by the PPP.
The decision to dissolve the cabinet was made after Zardari invited comments from PPP leaders on his intention of installing a "lean cabinet whose members are above board".
All ministers, advisors and officials holding positions with the rank of ministers will cease to hold their posts from a date to be "soon decided by the Prime Minister," the statement said.
The decision on dissolving the 62-member cabinet will be made after consultations with partners in the PPP-led coalition at the centre and "under the guidance and advice" of the PPP co-chairman Zardari, presidential spokesman Farhatullah Babar said.
The PPP is facing pressure from the main opposition PML-N party and Western donors like the International Monetary Fund to reduce the size of the federal cabinet and to make significant cuts in government spending.
The PML-N has demanded the formation of a smaller cabinet as part of its 10-point agenda for reforms that was accepted by the PPP last month. The PML-N has also demanded that its agenda should be implemented by February 20.
Donors like the IMF and the US have been pushing the government to slash spending and introduce tax reforms, including a reformed general sales tax regime, for continued financial aid.
Addressing a news conference after the meeting of the central executive committee, PPP secretary general Jahangir Badar said the party initially unanimously authorised President Zardari to dissolve or reshuffle the cabinet or make any other arrangements.
Zardari then authorised Prime Minister Gilani to dissolve the cabinet and choose a new council of ministers after consultations with the PPP's leaders and its coalition partners, Badar said. The Prime Minister will dissolve the cabinet at a time of his choosing and no timeframe has been set for this, he added.
Badar said All ministers were ready to resign as part of the exercise to revamp the cabinet. The PPP's top leadership also discussed the country's economic problems, price rise and the threat posed by terrorism and asked the Prime Minister to work with all political parties to forge consensus to tackle such issues, he said.
The PPP-led government should complete its full term so that democracy in Pakistan is strengthened, he said.
Sources said the proposed changes in the cabinet are unlikely to affect key ministries like Finance, Foreign Affairs, Defence and Interior as the government wants to maintain continuity in its dealings with the US and international donors.