Pakistan’s government is considering major technology-driven tax reforms as part of the upcoming federal budget 2026-27.
Officials say the proposed changes aim to curb tax evasion, underreporting, and smuggling through digital systems.
A high-level meeting chaired by Federal Minister for Economic Affairs Ahad Cheema reviewed a range of proposals linked to tax implementation for the upcoming federal budget.
The discussions focused on improving tax compliance and strengthening enforcement through modern technology. Officials examined multiple strategies designed to reduce leakages in the system.
The Federal Board of Revenue (FBR) team also briefed participants on budget-related proposals under consideration.
Focus on reducing tax evasion and smuggling
Authorities reviewed recommendations aimed at preventing underreporting, non-reporting, and under-invoicing across various sectors.
The proposals also included measures to combat tax evasion and smuggling through improved monitoring systems.
Officials emphasized the need for stronger enforcement tools supported by digital infrastructure to ensure greater transparency.
AI-based monitoring system
One of the key proposals discussed was the introduction of a digital monitoring mechanism supported by artificial intelligence.
The system is expected to track financial activity more effectively and reduce the need for manual intervention in tax collection processes.
According to officials, the goal is to build a more automated and efficient tax administration framework.
The meeting also reviewed a proposal to introduce an e-auction system for the sale of confiscated goods by customs authorities.
The new system is aimed at making the auction process more transparent and reducing human interference.
Officials believe this step could improve accountability and ensure fair valuation of seized assets.
Ahad Cheema said the government is committed to implementing tax reforms that support economic development and improve the business environment.
He added that the goal is to build a tax system where human intervention is minimized through digital automation.
According to him, technology-based solutions will play a key role in strengthening governance and ensuring better compliance.
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