Aaj Logo

Published 10 Feb, 2026 08:52pm

AI key to tax reforms, public service delivery, says finance minister

Finance Minister Muhammad Aurangzeb on Tuesday said artificial intelligence (AI) was becoming central to Pakistan’s efforts to improve public service delivery, strengthen revenue administration and support evidence-based policymaking.

He was speaking at a panel discussion titled “AI for Public Service Transformation and SDG Acceleration” at the National Artificial Intelligence Workshop in Islamabad.

Addressing the forum, Aurangzeb said countries were adopting artificial intelligence at different speeds, shaped by their economic structures and development priorities.

He said Pakistan must focus on applied and practical solutions that deliver measurable gains in efficiency, transparency and productivity, rather than pursuing technology for its own sake.

The finance minister said AI-enabled systems were already playing an expanding role in improving tax compliance, enforcement and decision-making.

He noted that ongoing tax reforms were leveraging AI-driven customer relationship management systems, production monitoring tools, risk-based compliance mechanisms and faceless customer processes.

“These interventions are aimed at reducing leakages, enhancing transparency and improving revenue outcomes,” he said, adding that limiting discretionary human intervention through technology was essential to curbing inefficiencies and corruption.

Aurangzeb said AI-led systems had delivered tangible fiscal gains that would not have been possible through manual processes alone.

On digital assets, he said the establishment of the Pakistan Virtual Asset Regulatory Authority reflected the government’s commitment to managing risks while integrating emerging technologies into the formal economy.

Bringing such activity into a regulated framework was vital for financial stability and future economic growth, he added.

The finance minister also stressed the need to invest in human capital and skills development to help young Pakistanis access higher-value segments of the global technology sector.

He said advanced technologies, including blockchain and data analytics, could drive productivity-led growth and expand income opportunities.

Concluding his remarks, Aurangzeb said artificial intelligence offered major opportunities in revenue mobilisation, public services, and climate and population management.

However, he cautioned that these gains would require clear policy direction, institutional readiness and a coordinated, whole-of-government approach.

Federal Minister for Climate Change Dr Musadik Malik, IT Minister Shaza Fatima Khawaja and Planning Minister Ahsan Iqbal also attended the session.

Read Comments