Finance Minister Muhammad Aurangzeb has said the government would considerably reduce direct interaction between taxpayers and tax officials by introducing an artificial intelligence (AI)-driven tax administration model aimed at improving transparency and efficiency.
Addressing a banking summit in Karachi, Aurangzeb said parliament had approved a new tax administration framework under which tax notices would increasingly be generated and issued through AI-based systems, limiting human intervention in tax-related processes.
The minister also expressed confidence in Pakistan’s efforts to expand its presence in international financial markets.
He described the country’s successful entry into China’s capital market through the issuance of its first Panda Bond as a major milestone. Pakistan raised the yuan equivalent of $250 million in May 2026, with investor demand exceeding the target by more than five times.
Aurangzeb said the government was preparing to launch additional Eurobonds and sukuk, including innovative dollar-settled, rupee-linked bonds. Requests for proposals have already been sent to international investors to gauge market demand and pricing.
He noted that Pakistan had returned to the international bond market after a four-year gap, with strong investor interest allowing the latest Eurobond issuance to expand to $750 million.
Highlighting domestic markets, the finance minister said rising investor participation, including from Gen Z, improving corporate profitability, and reforms led by the Tax Policy Office reflected growing confidence in Pakistan’s economy.
