KARACHI: The Asian Development Bank (ADB) has highlighted significant challenges faced by Pakistan as it seeks to modernize public services through artificial intelligence (AI). In a recent blog post, ADB officials pointed out the deep structural barriers that hinder progress, including fragmented data systems, weak inter-agency coordination, low digital literacy, and limited institutional capacity. These obstacles not only restrict access to government services but also complicate tax administration, raising concerns that technology-driven reforms may outstrip the government’s capacity to implement them effectively.
Farzana Noshab, Lead Economics Officer at the ADB, and Yuji Miyaki, Public Management Specialist (Taxation), articulated these concerns, emphasizing that improving government efficiency through AI hinges less on advanced algorithms and complex models and more on empowering public officials to design the tools they use. “Improving government efficiency through AI depends less on developing new algorithms or complex models than on allowing public officials to design the tools they use,” they noted.
Mehwish Salman Ali, CEO and Founder of Data Vault Pakistan and ZahanatAI, underlined the necessity of local contributions to AI adoption in public sector entities. She argued that local AI tools and chatbots should be encouraged to replace cumbersome and time-consuming processes. Ali stressed that integration of public and business data must occur within Pakistan, maintained in local data centers, to ensure security and relevance.
Efforts to modernize public services in Pakistan often rely on external suppliers who design systems without a full understanding of the local context or specific needs of government agencies and citizens. This disconnect can result in slow adoption rates and systems that fail to align with operational realities. Instead, government teams should define their needs from the outset, allowing for the introduction of AI where it can deliver the most significant value.
Recent initiatives by the Federal Board of Revenue illustrate this principle in action. The agency has streamlined tax administration and filing procedures, launching a user-friendly electronic tax return form with auto-fill features and tailored forms for various taxpayer categories, including an upcoming Urdu version. Furthermore, upgrades to the online filing system facilitate real-time data sharing, while automation of withholding tax payments now extends to digital invoicing. These reforms have transformed previously complex requirements into a more manageable process, enhancing compliance for citizens and improving transparency and efficiency for officials.
The ADB has noted that by eliminating unnecessary steps, standardizing documentation, and harmonizing data formats across agencies, digital tools and AI can function more effectively. This has led to a more accessible tax and customs administration that is less prone to errors and better serves the public. Tax officers and IT staff in Pakistan are collaborating to develop an AI-enabled tax analytics module and a multilingual citizen services chatbot, further exemplifying this approach.
However, introducing AI into government systems necessitates high-quality data, consistent formats, and clear rules for data sharing. Currently, databases across various agencies lack compatibility, compromising the accuracy of AI tools. The envisioned multilingual AI-powered chatbot aims to simplify information and guide users through government services while providing audio or video explanations for individuals with limited literacy or internet skills. This design focus is crucial to ensure that the chatbot serves to enhance accessibility rather than exacerbate inequalities.
Dr. Noman Ahmad Said, CEO of SI Global Solutions, emphasized that the successful adoption of AI and its intended benefits hinge on a broad segment of the population, including government officials, learning to use AI tools effectively. He called for immediate action to provide training, develop online courses, and establish boot camps at universities and public sector institutions to ensure early and sustainable outcomes.
Without addressing the complexities inherent in its public services, Pakistan risks leaving many citizens behind as it strives to incorporate AI into its governance framework. As the country grapples with these challenges, the path forward will require a concerted effort to build the necessary infrastructure, capacity, and understanding among public officials and citizens alike.
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