ISLAMABAD: Pakistan’s finance minister, Muhammad Aurangzeb, has underscored the need for directing investment in technology during a meeting with an official of the McKinsey global management consultancy firm, the Pakistani finance ministry said on Monday, instigating a cultural transition toward digital governance that would aid the government’s tax collection efforts.
In May, Pakistan signed an agreement with McKinsey and Company for the digitalization of its tax system as the South Asian nation strives to introduce reforms amid talks with the International Monetary Fund (IMF) for a new bailout program.
Pakistan’s Federal Board of Revenue (FBR) last year said the country had a “very narrow tax base” of around 5.2 million people in 2022, out of a population of 240 million people. The FBR had said it planned to add 1.5 million new taxpayers to the existing base during the current fiscal year.
On Monday, the finance minister held a meeting with McKinsey & Co’s Regional Head of Technology and Tax, Tom Isherwood, and other officials in Islamabad, wherein he emphasized the government’s commitment to improve tax collection.
“The finance minister emphasized the need for investment in technology and fostering a cultural shift toward digital governance,” the finance ministry said in a statement.
The discussions centered around the possibility of achieving quick wins by leveraging data and implementing daily reporting to monitor real-time progress. The finance minister also shared the Pakistan Revenue Automation Limited and the Revenue Mobilization Investment and Trade’s (REMIT) data that could be utilized in digitizing the FBR tax system, according to the statement.
Pakistan’s State Minister for Finance Ali Malik, who was also present at the meeting, discussed ways to enhance the ongoing exercise by efficiently generating, organizing and analyzing data. He stressed the importance of a data-driven approach for improving the project outcomes.
The McKinsey team thanked the finance minister for ensuring the completion of the exercise within the given time frame, the statement said.
Pakistan needs $24 billion in payments for debt and interest servicing in the next fiscal year starting July 1 — three times more than its central bank’s foreign currency reserves.
The South Asian nation is seeking yet another long-term, larger IMF loan, with the finance minister saying Islamabad could secure a staff-level agreement on the new program by early July. If successful, this would be the 25th IMF bailout for Pakistan.
The IMF-led structural reforms require Pakistan to raise its tax-to-GDP ratio, stop losses in state-owned enterprises and manage its energy sector losses which run into trillions of rupees.
Pakistan’s finance ministry expects the economy to grow by 2.6 percent in the current fiscal year ending June, while average inflation is projected to stand at 24 percent, down from 29.2 percent in the outgoing fiscal year.
Pakistan’s finance minister urges investment in technology for digital governance, tax collection
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Pakistan’s finance minister urges investment in technology for digital governance, tax collection
- The statement came after Finance Minister Muhammad Aurangzeb’s meeting with officials of McKinsey global management consultancy firm
- The two sides discussed ways to achieve quick wins by leveraging data and implementing daily reporting to monitor real-time progress
Pakistan IT minister in Kuwait to attend digital cooperation body meeting on AI risks
- Shaza Fatima Khawaja to attend event themed ‘Inclusive Prosperity in the Age of AI’
- Pakistan approved National AI Policy last year, launched first locally hosted AI cloud
KARACHI: Pakistan’s Information Technology (IT) Minister Shaza Fatima Khawaja on Wednesday arrived in Kuwait on a two-day visit to hold discussions on artificial intelligence (AI) and its risks at the fifth Digital Cooperation Organization General Assembly (DCOGA), her office said.
The annual gathering brings together representatives of various states and international organizations to discuss the digital economy and the challenges associated with its growth. This year’s theme is “Inclusive Prosperity in the Age of AI.”
Pakistan has been actively developing its AI landscape, marked by the approval of the National AI Policy in July last year and the subsequent launch of its first locally hosted AI cloud in a bid to integrate AI for economic growth.
“The federal minister will participate in the General Assembly of the Digital Cooperation Organization (DCO) and hold meetings with representatives of member states,” the IT ministry said in a statement on Wednesday.
“Discussions will be held on artificial intelligence and its risks, with meetings scheduled with global policymakers.”
Khawaja will hold high-level meetings with global leaders at the event and participate in the DCO thematic ministerial roundtable comprising ministers from various countries, it added.
The development comes as Pakistan seeks to position itself as a credible participant in the global AI economy to harness AI for productivity, skills development and innovation while managing regulatory risks.
Pakistan has mainly been engaging with Gulf countries on AI. In October last year, Pakistan’s Prime Minister Shehbaz Sharif announced that Saudi Arabia has offered free training in IT and AI for Pakistani youth. Last November, Pakistan and the United Arab Emirates agreed to deepen cooperation in AI, digital governance and data innovation.
Pakistan is also hosting a week-long national AI initiative, “AI Indus Week 2026,” from Feb. 9-15 to promote the responsible use of technology and accelerate the adoption of AI across the public and private sectors.
