Pakistan, Nigeria discuss revenue reforms and fiscal frameworks

Finance Minister Muhammad Aurangzeb on Thursday briefed a visiting Nigerian revenue delegation on Pakistan’s ongoing economic reforms, including tax digitisation, energy sector restructuring and federal revenue distribution mechanisms.

The 13-member team from Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), led by Federal Commissioner Barrister Imo Effiong Akpan, is on a study tour focused on reviewing Nigeria’s national revenue distribution formula. The delegation has held engagements with several Pakistani institutions, including the Federal Board of Revenue.

During the meeting, Akpan outlined the RMAFC’s mandate as a constitutionally established body responsible for formulating revenue allocation frameworks and advising on public sector remuneration. He said the study tour aims to learn from Pakistan’s experience in tax administration, customs modernisation and federal revenue-sharing structures.

Aurangzeb briefed the delegation on improvements in Pakistan’s macroeconomic indicators over the past 18 months, noting stability in the external account, moderating inflation, and improved market sentiment. He reiterated the government’s commitment to “maintaining reform momentum through responsible economic management and continued engagement with international partners”.

He highlighted ongoing taxation reforms, including digital processing, real-time compliance systems and efforts to broaden the tax base. The minister also outlined progress in the energy sector, including measures to address circular debt and shift toward cost-reflective tariffs.

The minister detailed restructuring of state-owned enterprises, noting that 24 entities had been transferred to the Privatisation Commission as part of a transition to a holding company model. He also mentioned the rollout of pension reforms and rightsizing measures to support long-term fiscal sustainability.

Aurangzeb informed the delegation of the comprehensive transformation underway within the Federal Board of Revenue, including automation in customs, enhanced transparency and preparatory work for the Pakistan Revenue Authority.

Responding to questions, he pointed to Pakistan’s shift toward private-sector-led growth and said an enabling regulatory environment was central to this direction. He also explained Pakistan’s bi-monthly federal revenue distribution system and the process for determining public officeholder remuneration.

The minister reaffirmed Pakistan’s willingness to expand institutional cooperation with friendly countries, including Nigeria, in areas such as mining, renewables and industrial development.

Akpan expressed appreciation for Pakistan’s support during the delegation’s visit and said the insights gained would contribute to Nigeria’s ongoing fiscal reform efforts.