The federal government is moving toward introducing a technology-based tax administration system, including artificial intelligence-driven monitoring mechanisms, as part of broader fiscal reforms expected to shape the upcoming federal budget.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb shared the government’s reform agenda during a meeting with a delegation of the Institute of Chartered Accountants of Pakistan (ICAP) at the Finance Division on Monday.
The finance minister emphasized that Pakistan’s tax system is being redesigned around institutional modernization, simplified procedures, and increased automation aimed at improving transparency, reducing manual intervention, and facilitating taxpayers.
He noted that technology is becoming central to revenue administration, with AI-based production monitoring and digital oversight tools already being introduced across several sectors to improve documentation, enhance compliance, and minimize revenue leakages.
Aurangzeb also highlighted the operationalization of the Tax Policy Office under the Finance Division, describing it as a key institutional reform intended to strengthen coordination between tax policy formulation and implementation.
During the meeting, the ICAP delegation presented recommendations related to expanding documentation, improving group taxation frameworks, supporting export-oriented services, and harmonizing tax treatment across sectors. Discussions also focused on measures to improve competitiveness, attract investment, enhance ease of doing business, and broaden the tax base.
The finance minister said the proposals would be reviewed as part of the ongoing budget preparation process, reiterating the government’s commitment to building a transparent, technology-driven tax system capable of supporting economic growth while strengthening governance and revenue collection.
The ICAP delegation was led by President Samiullah Siddiqui and included Vice Presidents Jehanzaib Amin and Ahmed Raza Mir, along with Council Member and Chairman Economic Advisory Committee Zeeshan Ijaz.
