Finance Minister Muhammad Aurangzeb defended the hiring of US-based McKinsey & Company for the digitalisation of Pakistan’s tax system. He told the National Assembly that McKinsey was selected after a “transparent competitive” process. Responding to concerns raised by MQM-P lawmaker Syed Hafezuddin, he clarified that seven parties, including international and domestic firms, had applied for the project and McKinsey was chosen after a rigorous process.
Aurangzeb emphasised that the government’s goal is to transform the tax authority by focusing on people, procedures and technology. He explained that the plan involves hiring “competent people having integrity” and simplifying tax procedures. The project also aims to digitize the tax system to reduce corruption, minimise human intervention and enhance transparency. “It is all about client service so that we could bring credibility and trust back in tax authority,” he added.
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He further clarified that Pakistan’s national exchequer is not bearing any cost for this project. “McKinsey is an international company having an office in Pakistan with resources on the ground. They are helping us in the design phase and overseeing implementation,” he said. The finance minister also confirmed that the Gates Foundation is funding the project.
During the session, Aurangzeb also addressed other economic issues. He projected that remittances would rise from $30 billion last year to between $35 billion and $36 billion this year. Additionally, he denied reports about a revision in government employees’ pay scales, stating that such a proposal was not under consideration. However, he confirmed that increasing the rent limit for government employees using privately owned houses was under review. Regarding Pakistan’s economic performance, he noted that the current account deficit had significantly decreased, turning into a surplus in FY25 due to strong remittances, controlled demand and stable international commodity prices.
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