Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, convened a meeting with Mr. Tom Isherwood, Regional Head of Technology and Tax at McKinsey & Co., and McKinsey Partner, Mr. Ali Malik, at the Finance Division today. The meeting also included Minister of State, Mr. Ali Pervaiz Malik.
The Finance Minister highlighted the crucial need for significant investment in technology to drive a cultural shift towards digital governance. He reiterated the government’s unwavering commitment to enhancing tax collection through ongoing digitization efforts by the Federal Board of Revenue (FBR). The Minister emphasized that leveraging data from Pakistan Revenue Automation Limited (PRAL) and REMIT could play a pivotal role in digitizing FBR’s tax system.
During the discussions, the Finance Minister noted the potential for achieving quick wins by effectively utilizing available data. He suggested implementing daily reporting mechanisms through dashboards to enable real-time monitoring of progress. This approach aims to streamline the tax collection process, ensuring efficiency and transparency in operations.
Minister of State, Mr. Ali Pervaiz Malik, elaborated on how the ongoing digitization exercise could be further enhanced by efficiently generating, organizing, and analyzing data. He emphasized the importance of adopting a data-driven approach to improve overall project outcomes. By focusing on data accuracy and real-time analysis, the government aims to achieve substantial improvements in tax collection and governance.
The McKinsey team, represented by Mr. Tom Isherwood and Mr. Ali Malik, expressed their gratitude to the Finance Minister for the productive meeting. They assured the Finance Minister of their commitment to completing the digitization exercise within the stipulated timeframe. McKinsey’s involvement is expected to bring in global best practices and innovative solutions to support the FBR’s digitization efforts.
The Finance Minister’s emphasis on technology and digital governance aligns with the broader vision of the government to modernize Pakistan’s tax collection system. By integrating advanced technological solutions, the government aims to create a more transparent, efficient, and accountable system. This initiative is part of a larger strategy to enhance revenue generation, reduce tax evasion, and promote a culture of compliance among taxpayers.
Implementing daily reporting through dashboards will enable the FBR to monitor tax collection activities in real-time. This approach ensures that any discrepancies or issues can be promptly identified and addressed. Real-time monitoring also facilitates better decision-making and allows for timely interventions to optimize tax collection processes.
The collaboration between the Finance Ministry and McKinsey underscores the importance of public-private partnerships in achieving sustainable development goals. By leveraging McKinsey’s expertise in technology and tax systems, the government aims to accelerate its digitization agenda and create a robust framework for tax governance.
