Pakistan, UK discuss tax reform and digital governance under stabilization agenda

Pakistan’s Federal Minister for Finance and Revenue, Muhammad Aurangzeb (second left), holding a meeting with the United Kingdom’s Minister for Development, Baroness Chapman (not present), at the Finance Division in Islamabad, Pakistan, on December 9, 2025. (Finance Ministry)
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Updated 09 December 2025
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Pakistan, UK discuss tax reform and digital governance under stabilization agenda

  • Pakistan outlines tax expansion, energy reform and SOE restructuring under IMF-linked program
  • UK signals readiness to support governance, digitalization, investment climate improvements

ISLAMABAD: Pakistan and the United Kingdom reaffirmed cooperation on economic reform and digital governance on Tuesday, with Finance Minister Muhammad Aurangzeb telling UK Minister for Development Baroness Chapman that stabilization efforts were now centered on tax expansion, debt control and restructuring state-owned enterprises.

Pakistan is working to widen its tax base, reduce leakages through digital systems and overhaul energy-sector losses as part of ongoing fiscal reform. The government is also pursuing privatization and pension restructuring to create fiscal space for social spending in a period of high external financing needs.

Aurangzeb “highlighted ongoing work on energy sector efficiencies, debt management, public-sector right-sizing, pension reform, and measures aimed at restoring fiscal sustainability and creating space for social sector priorities,” according to an official readout of the meeting released by the finance ministry. 

Chapman said the UK stood ready to support reform delivery through technical assistance, regulatory cooperation and digital transition tools aimed at simplifying compliance and improving transparency, the statement added. 

Chapman “reaffirmed the United Kingdom’s readiness to provide technical assistance, regulatory support, and capacity-building … particularly in digitalization, governance reforms, investment climate improvement, and ease of doing business.”

Talks also covered demographic pressures, provincial governance, climate resilience and women’s economic participation, areas both sides said needed coordinated financing and policy planning. The ministers further discussed aligning development spending with World Bank-supported programs and encouraging private-sector participation in reforms.


‘Good sense’ hailed as blockbuster Pakistan-India match to go ahead

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‘Good sense’ hailed as blockbuster Pakistan-India match to go ahead

  • Pakistan ends week-long standoff after ICC and regional boards intervene over boycott threat
  • India-Pakistan clash seen as financial linchpin for tournament, with cancelation hurting all members

MUMBAI: Pakistan’s decision to U-turn and go ahead with their blockbuster Group A match against India at the T20 World Cup on February 15 was hailed Tuesday as an outbreak of “good sense” and “good for cricket.”

The Pakistan government in Islamabad late on Monday night ended a week-long stand-off by rescinding its order for the cricket team to boycott the match in Colombo.

The biggest and most lucrative clash in world cricket was revived after a frantic weekend of negotiations.

It culminated in International Cricket Council (ICC) and Bangladesh Cricket Board (BCB) chiefs flying to Lahore on Sunday for talks with the Pakistan Cricket Board (PCB).

The governments of Bangladesh and Sri Lanka both wrote to the Islamabad government on Monday urging it to change its stance and allow the game to go ahead, and just before midnight they got their wish.

After “multilateral discussions, as well as the request of friendly countries, the Government of Pakistan hereby directs the Pakistan National Cricket Team to take the field on February 15,” the Islamabad government said on its official X account late Monday night.

The decision had been taken with the aim of “protecting the spirit of cricket,” it added.

Former India cricketer Madan Lal told AFP on Tuesday: “Pakistan did shake up the ICC by repeatedly saying they would not play.

“Eventually, the ICC had to send officials to Pakistan to sort out the issue” and that was “good for cricket.”

“We want strong teams to play so that the charm of the World Cup is not lost,” he added.

‘LOSS-LOSS SITUATION’

Sri Lanka, who will host the match which generates multi-millions of dollars in advertising, broadcast rights, sponsorship and tourism, also hailed the decision.

Sri Lankan President Anura Kumara Dissanayake thanked Pakistan’s Prime Minister Shehbaz Sharif for “ensuring the game we all love goes on.”

“Delighted that the eagerly awaited India and Pakistan match at the ongoing T20 Cricket World Cup in Colombo will proceed as planned,” Dissanayake said in a social media post.

Veteran Indian journalist Pradeep Magazine told AFP “good sense has prevailed on all sides.”

Financial considerations would have been taken into account, he added.

“India-Pakistan is not just about cricket revenue — it also means wider commercial revenue,” he said.

“Everyone realized that losing the revenue from an India-Pakistan match would have been a loss-loss situation for all ICC member nations.”

Bitter political rivals Pakistan and India have not played bilateral cricket for more than a decade and meet only at global or regional tournament events, and only on neutral territory.

The 20-team tournament had been overshadowed by an acrimonious political build-up.

Bangladesh, who refused to play in India citing security concerns, were replaced by Scotland.

As a protest, the Pakistan government ordered the team not to face co-hosts India in the Group A fixture.

Pakistan, who edged out Netherlands in the tournament opener on Saturday, would have conceded two points if they had forfeited the match, which could have put their chances of progressing in the tournament in jeopardy.

They play the USA in their second group match in Colombo later Tuesday.

India captain Suryakumar Yadav said on Friday that his team would travel to Colombo for the clash, whether the game was on or not.

“We haven’t said no to playing them,” Suryakumar said. “Our flights are booked and we are going to Colombo.”