Aurangzeb Says AI Driving Tax Reform, Public Service Delivery and Digital Asset Regulation in Pakistan

Finance Minister Muhammad Aurangzeb has said that artificial intelligence is becoming central to Pakistan’s strategy for improving public service delivery, strengthening revenue administration and enabling evidence-based policymaking. He made these remarks during a panel discussion titled AI for Public Service Transformation and SDG Acceleration at the National Artificial Intelligence Workshop held in Islamabad.

Addressing policymakers, technologists and development stakeholders, Aurangzeb noted that countries around the world are adopting artificial intelligence at different speeds, shaped by their economic structures and national priorities. For Pakistan, he emphasized, the focus must remain on applied, practical deployments that generate measurable gains in efficiency, transparency and productivity rather than pursuing advanced technologies without defined outcomes.

According to the finance minister, AI-enabled systems are already contributing to improvements in tax compliance, enforcement and administrative decision-making. He said the government’s ongoing tax transformation agenda, structured around reforms in people, processes and technology, is incorporating AI-driven customer relationship management platforms, production monitoring tools, risk-based compliance frameworks and faceless customer processes. These systems are designed to streamline workflows, reduce manual intervention and strengthen oversight mechanisms.

Aurangzeb stated that such technology-led interventions are aimed at reducing revenue leakages, improving transparency and delivering stronger fiscal outcomes. He added that limiting discretionary human involvement through automated systems is essential to curbing inefficiencies and corruption within public institutions. The finance minister asserted that AI-powered mechanisms have already delivered tangible fiscal gains that would not have been achievable through manual processes alone.

Beyond tax administration, Aurangzeb addressed the regulatory approach toward digital assets. He pointed to the establishment of the Pakistan Virtual Asset Regulatory Authority (PVARA) as a signal of the government’s intent to integrate emerging financial technologies into a formal and supervised framework. Bringing digital asset activity under regulation, he said, is necessary to manage systemic risks, safeguard financial stability and unlock future economic potential linked to blockchain-based ecosystems.

The minister also highlighted the importance of human capital development as a parallel priority. He underscored the need to equip Pakistan’s youth with advanced technical skills so they can access higher-value segments of the global technology economy. Investment in skills development, he suggested, is critical to ensuring that digital transformation translates into sustainable employment and income opportunities.

Aurangzeb noted that advanced technologies such as blockchain and data analytics can support productivity-led growth across sectors. He pointed to potential applications in revenue mobilisation, climate policy, population management and broader governance reforms. By leveraging data-driven insights, public institutions can improve planning accuracy and allocate resources more efficiently.

However, the finance minister cautioned that realizing the full benefits of artificial intelligence will require clear policy direction, institutional preparedness and coordinated execution across ministries and agencies. A fragmented approach, he warned, would dilute the impact of technological investments. Instead, he called for a whole-of-government framework to guide digital transformation initiatives and align them with national development objectives.

The session was also attended by Federal Minister for Climate Change and Environmental Coordination Dr Musadik Malik, Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja, and Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, reflecting cross-ministerial engagement on the future of AI in governance and economic management.

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