The Privatization and Corporatization Board (PCB) has directed State-owned enterprises to reduce their workforce by 33 per cent within the next three months.

A circular signed by PCB President Mohamed Anas states that the three-month implementation period took effect on 13 July.

The directive follows guidance issued to the PCB by the Ministry of Finance and Public Enterprises. The ministry said the measure is intended to improve the operational efficiency of State-owned enterprises and ensure human resources are managed more effectively.

The ministry has also instructed State-owned companies to strengthen their recruitment process by placing greater emphasis on qualifications and skills when hiring employees.

Several State-owned enterprises have already begun implementing measures to reduce their workforce. As part of the process, companies, including the Housing Development Corporation (HDC) and Fenaka Corporation, have opened voluntary separation schemes, allowing employees to resign in exchange for three months' salary.

The PCB said the workforce reductions are intended to ensure staffing levels are proportionate to the size and operational needs of each company.

The board will closely monitor how companies implement the directive. State-owned enterprises have been instructed to submit weekly updates on changes to their workforce every Sunday.

The PCB said these measures are necessary to ensure the long-term sustainability of State-owned enterprises.

The circular also outlines additional cost-cutting measures, including restricting new recruitment except where essential, suspending promotions, reducing overtime work, and cutting expenditure on non-essential activities and official travel.

The PCB said implementation of all the measures will continue to be monitored, with regular progress updates shared with the Ministry of Finance and Public Enterprises.