AI Tax System: Pakistan to Cut Human Role in Tax Notices, Says Finance Minister
Muhammad Aurangzeb says AI-led tax notices will improve transparency as Pakistan prepares new bonds and seeks growth.
Finance Minister Muhammad Aurangzeb addresses a banking summit in Karachi.
AI Tax System will cut direct contact between tax officials and taxpayers, Finance Minister Muhammad Aurangzeb said on Tuesday.
Speaking at a banking summit in Karachi, he said parliament had approved a new tax administration model. Under the plan, AI will issue tax notices.
As a result, he said, the system should improve transparency and reduce unnecessary human intervention.
Aurangzeb also said Pakistan was making progress in global financial markets. In particular, he pointed to the Panda Bond as a major milestone.
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Pakistan raised the yuan equivalent of $250 million in May 2026, and demand was more than five times the target.
Moreover, the finance minister said Pakistan is preparing more Eurobonds and sukuk. He added that the new instruments will be dollar-settled and rupee-linked.
In addition, officials have invited proposals from international investors to assess demand and pricing.
Pakistan returned to the international bond market after four years. Therefore, strong demand lifted the latest Eurobond issue to $750 million.
He also said stock market strength depends on investor participation, not index levels alone. He cited more investors, rising Gen Z participation and double-digit corporate profits as signs of recovery.
On the budget, he said the Tax Policy Office led the process for the first time. It now sits in the Finance Division.
At the same time, the government has backed export-led growth, lower tax burdens and subsidised financing. It has also kept the tariff regime supportive.
Aurangzeb said banks will remain central to Pakistan’s shift from stabilisation to growth. He urged more lending to SMEs, exporters, agriculture, manufacturing, construction and IT.
Pakistan Banks Association chairman Zafar Masood also spoke at the summit. He said banks pay more than Rs1 trillion in taxes each year.
He added that agricultural lending rose 39% in a year. Housing finance grew 90%.
Meanwhile, SME lending rose 111%, while annual financing to SMEs increased 80%.
