Advisor to the Finance Minister Khurram Schehzad has outlined Pakistan’s broader economic reform agenda, the key priorities of the FY2026-27 budget, and the rollout of the country’s New Tax Operating Model (NTOM), which aims to modernize tax administration through technology and data-driven enforcement.
Speaking at a four-day National Tax Seminar jointly organized by the Pakistan Tax Bar Association (PTBA) and the Lahore Tax Bar Association (LTBA), Schehzad said Pakistan’s improving macroeconomic outlook is being reflected in stronger sovereign credit ratings, successful IMF programme reviews, renewed access to international capital markets, rising investor confidence, and positive assessments from international financial institutions.
He said the FY2026-27 budget provides relief to salaried taxpayers, introduces measures to improve business competitiveness and support exporters, advances tariff reforms, promotes documentation of the economy, and focuses on expanding the tax base instead of increasing the burden on existing taxpayers.
Schehzad also highlighted the government’s wider reform programme, covering tax administration, public debt management, privatization, state-owned enterprises, pension reforms, the energy sector, Digital Pakistan initiatives, capital market development, and improved access to finance. He said these measures are aimed at strengthening institutions, improving governance, raising productivity, and creating a more competitive, investment-friendly economy.
A major focus of his address was the New Tax Operating Model, which replaces the traditional officer-led system with a data-driven, technology-enabled, faceless, and accountable tax administration.
Under the new framework, audit, assessment, and field operations will be handled by separate specialized functions, supported by digital technologies, centralized data analytics, and risk-based compliance systems. The model is designed to reduce discretionary powers, minimize direct interaction between taxpayers and tax officials, strengthen taxpayer rights, and improve transparency, consistency, and operational efficiency.
Schehzad said compliant taxpayers will benefit from simpler and more predictable services, while enforcement efforts will increasingly rely on data analytics to identify tax evasion rather than discretionary action by tax officials.
He also acknowledged the role of tax bar associations and tax practitioners in supporting tax reforms, saying continued engagement with stakeholders would be critical to the successful implementation of the New Tax Operating Model.
The seminar included technical sessions on provincial sales tax, FY2026-27 budget measures, tax policy, faceless tax administration, digitalization, and direct and indirect taxation. Economist Nadeem Ul Haque delivered the keynote address on tax policy reforms, while FCA Muhammad Rehan Siddiqui presented on faceless jurisdiction and the digitalization of tax administration.
Representatives of the Pakistan Tax Bar Association and Lahore Tax Bar Association reaffirmed their commitment to working with the government to develop a simpler, more transparent, technology-driven, and business-friendly tax system.
