Islamabad, April 26, 2024 – In a pivotal move towards modernizing Pakistan’s taxation framework, Finance Minister Senator Muhammad Aurangzeb presided over a meeting of the Steering Committee on the Digitalization of the Federal Board of Revenue (FBR) on Friday.
The meeting aimed to assess the advancements made in digitalizing the FBR’s operations and to explore further measures to enhance the efficiency and transparency of tax administration nationwide.
The high-profile meeting drew the participation of significant stakeholders, including FBR Chairman Malik Amjed Zubair Tiwana, CEO of Karandaaz Pakistan Waqas ul Hasan, Country Lead for the Bill and Melinda Gates Foundation Syed Ali Mahmood, and other FBR representatives. Their collective focus was on accelerating the transition to a digital-led tax system.
During the session, the Finance Minister reiterated the government’s resolve to work in conjunction with the private sector and all relevant entities to drive Pakistan towards an updated and more efficient taxation system. He emphasized the critical importance of the FBR’s digitalization, not just for enhancing tax collection and administration but also as a catalyst for sustained economic growth.
A significant highlight of the meeting was the approval of a proposal from McKinsey and Company, a globally recognized consulting firm selected to lead the digitalization initiative. The Director of Digital Financial Services (DFS) at Karandaaz, Sharjeel Murtaza, provided insights into the procurement process. This process involved an exhaustive technical evaluation by a committee of senior FBR officials and technical experts from Karandaaz Pakistan.
After a rigorous review of both technical and financial components, McKinsey and Company was chosen as the top bidder. The committee was presented with a comprehensive, negotiated proposal from McKinsey, which was subsequently greenlit for initiating the contract and kick-starting the project.
Senator Aurangzeb lauded the efforts of the Procurement Committee in securing top-tier consulting services for this national endeavor. He underscored the necessity for a results-driven approach that builds on existing digitalization knowledge and prioritizes quick wins to maintain momentum.
The meeting wrapped up with a consensus on the immediate next steps, marking the commencement of the FBR’s operational digitalization. This involves a strategic partnership between the FBR and the private sector aimed at fostering a robust, digitally empowered tax ecosystem in Pakistan.
This initiative is part of a broader government strategy to overhaul Pakistan’s economic mechanisms through technology. By reducing bureaucratic hurdles and introducing greater transparency, the government hopes to improve voluntary tax compliance and broaden the tax base, ultimately leading to more robust revenue streams that can support the country’s developmental goals.
The successful digitalization of the FBR is expected to set a precedent for other sectors in the government, potentially leading to widespread adoption of digital solutions across various departments, thereby enhancing overall governmental efficiency and service delivery to the public.
