Pakistan finance chief says country leveraging AI to boost tax compliance, revenue

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb (left), Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja (center), and Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal (right) sit during a panel discussion titled ‘AI for Public Service Transformation and SDG Acceleration’ at the National Artificial Intelligence (AI) Workshop in Islamabad on February 10, 2026. (Ministry of Finance, Government of Pakistan/X)
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Updated 11 February 2026
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Pakistan finance chief says country leveraging AI to boost tax compliance, revenue

  • Aurangzeb says AI-driven systems are cutting leakages, discretionary intervention in tax administration
  • He tells a national workshop the government must focus on applied AI, not technology for its own sake

KARACHI: Pakistan is deploying artificial intelligence-driven systems to strengthen tax compliance and enforcement as part of a broader reform push, Finance Minister Muhammad Aurangzeb said on Tuesday, adding the country must focus on applied AI solutions.

He was speaking during a panel discussion at the National Artificial Intelligence Workshop in the capital, as Pakistan undertakes sweeping fiscal and structural reforms under a $7 billion International Monetary Fund loan program aimed at stabilizing the economy and boosting revenue collection.

The government has pledged to widen the tax base, curb leakages and digitize administration, with technology playing a central role in its tax transformation agenda.

“AI-enabled systems are playing an increasingly important role in strengthening compliance, enforcement, and decision-making,” Aurangzeb said, according to a statement released by the finance division.

“The Government’s ongoing tax transformation, anchored in reforms to people, processes, and technology, is leveraging AI-led CRM [Customer Relationship Management] systems, AI-led production monitoring, risk-based compliance tools, and faceless customer processes to enhance transparency, reduce leakages, and improve revenue outcomes,” he added.

The finance minister said the focus for a country like Pakistan must remain on applied AI solutions that deliver measurable gains in efficiency, transparency and productivity, rather than on adopting technology for its own sake.

Reducing discretionary human intervention through technology was central to curbing inefficiencies and corruption, he said, adding that AI-led systems had generated tangible fiscal gains that would not have been achievable through manual processes alone.

Aurangzeb said investing in human capital and skills development was essential to enable Pakistan’s youth to participate in higher-value segments of the global technology ecosystem, noting that technologies such as blockchain and data analytics could support productivity-led growth.

He maintained artificial intelligence offered opportunities in revenue mobilization, public service delivery and climate and population management, adding that realizing those gains would require clear policy direction, institutional readiness and a coordinated, whole-of-government approach.
 


Pakistan backs replacement of electricity-intensive fans ahead of summer

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Pakistan backs replacement of electricity-intensive fans ahead of summer

  • Finance ministry sets aside $7 million guarantee to support bank financing
  • Government seeks rapid scale-up after pilot with 11 commercial banks

KARACHI: Federal Minister for Finance Muhammad Aurangzeb on Thursday reaffirmed support for a government-backed fan replacement program aimed at reducing electricity consumption ahead of the summer peak season, as authorities seek to ease pressure on the power system and promote energy conservation.

The initiative allows consumers to replace older, electricity-intensive fans with energy-efficient models through bank financing. To encourage commercial banks to participate, the Ministry of Finance has allocated Rs2 billion ($7 million) as a 10 percent first-loss risk guarantee, designed to absorb part of the credit risk and facilitate lending to households.

“From the perspective of the Ministry of Finance, the initiative remains a high priority, and the Ministry will continue to provide all necessary support to the Power Division to ensure its successful implementation and rapid scaling,” the finance minister said in a statement.

Electric fans are among the most widely used appliances in Pakistan, especially during the long and intense summer months when electricity demand typically surges and contributes to strain on the national grid.

According to the finance ministry, the program was formally launched on Thursday after a pilot phase conducted in collaboration with the State Bank of Pakistan (SBP) and 11 commercial banks.

During the trial phase, around 186 energy-efficient fans were installed, with disbursements of approximately Rs1.35 million ($4,800) benefiting 67 borrowers.

Officials said the financing and digital systems required to process applications and disburse funds are now operational, paving the way for expansion.

Aurangzeb said the next phase would focus on scaling up the program more rapidly in coordination with the SBP and commercial lenders so that its benefits are realized sooner rather than over a 10-year horizon.