Finance minister says tech-driven tax reforms to improve compliance, reduce revenue leakages

Federal Minister for Finance and Revenue Muhammad Aurangzeb has said the government was pursuing reforms in tax administration focused on people, processes and technology to improve transparency, compliance and taxpayer facilitation.

During a meeting with a delegation of the Institute of Chartered Accountants of Pakistan, the finance minister stressed the importance of continued engagement with professional bodies and industry stakeholders to ensure taxation and economic policies remain practical and aligned with broader reform objectives.

According to an official statement, Aurangzeb said the government was working on institutional modernisation, process simplification and greater automation to reduce unnecessary human intervention and strengthen transparency in the tax system.

He highlighted the operationalisation of the Tax Policy Office under the Finance Division as an institutional reform aimed at improving policy formulation and coordination between tax administration and policy.

The meeting also discussed the role of technology and digital systems in improving compliance, enforcement and revenue administration.

The finance minister said AI-led production monitoring and technology-driven oversight mechanisms introduced across different sectors were helping improve documentation, strengthen compliance and reduce leakages.

The ICAP delegation presented proposals relating to documentation, taxation structures for groups, export-oriented services and harmonisation of tax treatment across sectors.

Discussions also covered measures aimed at improving competitiveness, facilitating investment, enhancing ease of doing business and broadening the tax base alongside revenue mobilisation efforts.