Pakistan unveils 2026 reforms report, outlines sweeping institutional changes

ISLAMABAD: Pakistan has published its second annual “Pakistan Reforms Report 2026”, outlining wide-ranging institutional, digital and economic reforms carried out over the past year.

The report details reforms undertaken across federal ministries and departments but does not include an assessment of their effectiveness.

According to the document, more than 600 reform measures were implemented in over 135 federal institutions during 2025, with a stated focus on building sustainable systems rather than pursuing short-term decisions.

Digital governance and economy

The report said the enforcement of the Pakistan Digital Nation Act 2025 established a national framework for the digital economy. The Pakistan Digital Authority and National Digital Commission were created to strengthen digital governance.

Amendments to electronic crimes legislation in 2025 aimed to enhance online safety and digital accountability, it said.

Under the Skill Tech Pakistan initiative, 2,700 interns were placed in practical roles and 12,600 professional certifications were issued. More than 1,000 graduates were linked to industry under the National ICT Internship Programme, while 20 e-Rozgar centres were set up nationwide to promote freelancing.

Over 7,000 government officials completed training under the Google Career Certificates programme, and Huawei’s ICT programme provided advanced digital skills training to 100,000 young people, the report said.

A local Chromebook assembly line in Haripur gained capacity to produce 500,000 units annually. A 2.52 billion rupee project was launched to establish a National Centre for Gaming and Animation.

Public finance and transparency

The report said a direct credit system was introduced for defence pensions, with more than 230,000 pension records digitised. All Pakistan Navy and Air Force pensioners were linked to bank payments, along with 92 per cent of Army pensioners.

The RAAST instant payment system improved transparency and speed in financial transactions, it said.

Energy sector reforms were projected to generate long-term savings exceeding 1.4 trillion rupees, while reduced imports saved nearly $1 billion. New investment worth $5 billion was expected in the oil and gas sector, with progress towards $6 billion in investment in the Reko Diq project.

A nationwide tracking system for explosives was implemented and more than 15,000 oil tankers were linked to GPS monitoring.

Through the Public Procurement Regulatory Authority, the use of the e-procurement system (EPADS) was made mandatory. More than 10,000 public entities and 42,000 suppliers were registered, and over 500,000 government contracts worth more than 1.4 trillion rupees were processed electronically.

The Federal Board of Revenue introduced digital invoicing and point-of-sale systems, while artificial intelligence tools were deployed to improve tax compliance and monitoring.

Privatisation and corporate reforms

The privatisation ministry strengthened internal systems and introduced digital workflows and e-office mechanisms, the report said. The privatisation process of Pakistan International Airlines was broadcast live, which officials described as a step towards transparency.

An Audit Management Information System was activated in the Auditor General’s office, alongside a government data analytics centre to improve audit transparency.

The Securities and Exchange Commission of Pakistan launched a digital corporate registry and reduced the number of legal forms from 75 to 28.

Social protection and poverty alleviation

The report said 165,000 families were provided productive assets to alleviate poverty, while 204,760 families received interest-free loans and 226,991 individuals were provided employment and economic training. Fifty-six per cent of beneficiary families were reported to have become self-sufficient and exited the Benazir Income Support Programme.

Special courts for overseas Pakistanis were established in Islamabad, Punjab and Balochistan.

Education and skills

Internships and industry-linked certifications were made mandatory in higher education. Under an agricultural training programme in China, 885 experts received modern skills training.

Huawei partnerships provided IT and artificial intelligence training to 91,000 students, while curriculum reforms simplified and harmonised subjects for grades nine to 12.

Climate and environment

The government introduced a carbon market policy and Pakistan Green Taxonomy. It ratified the Kigali Amendment and highlighted its role in the global Loss and Damage Fund.

Data and scientific systems were strengthened to address climate risks, the report said.

Governance and regulatory reforms

The Ministry of Human Rights launched a study to align Pakistani laws with international standards and led GSP+ engagement meetings, helping maintain Pakistan’s preferential trade status with the European Union.

A domestic violence bill 2025 was introduced in parliament, and a national child rights portal and integrated data system were launched.

Under the Special Investment Facilitation Council and Board of Investment, reforms were introduced to ease investment. A Business Facilitation Centre incorporated 341 registrations, licences and permits into a one-window system, serving more than 100 investors daily.

Under the Regulatory Reforms Initiative, 89 unnecessary requirements were abolished and 241 were simplified and digitised, reducing annual compliance costs by an estimated 356.5 billion rupees.

Regional and institutional reforms

In Gilgit-Baltistan, legal amendments were introduced in 67 laws and regulations, a consolidated fund was operationalised, and development grants worth 1 billion rupees were released for infrastructure and energy projects.

The Economic Affairs Division secured $9.07 billion in external commitments in 2025 and disbursed $8.99 billion in development funds.

The Federal Ombudsman received 256,688 complaints and resolved 260,330 cases during the year.

A Public Grievance Resolution and Accountability Act was prepared to enable legal accountability of officials for negligence in complaint handling.

The report said the reforms collectively presented “a clear picture of transparency, stability and effective governance” across state institutions.