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Bureaucracy in the age of AI: A paradigm shift

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We live in an era of immense technological and fiscal challenges, where the convergence of artificial intelligence (AI) and governance is poised to redefine traditional bureaucratic structures.

At the same time, global debt has reached an unprecedented $315 trillion, placing developing nations like Pakistan in a precarious position due to alarmingly high debt-to-GDP ratios. This economic reality has forced governments worldwide to confront dwindling public finances and rethink how best to allocate resources while maintaining effective public services.

The fiscal pressures that were intensified in the aftermath of the COVID-19 pandemic have not fully subsided. Massive stimulus packages helped avert deeper economic collapses, but they have also introduced persistent inflationary pressures in many economies.

In Pakistan, these pressures translated into a 38 percent inflation rate in 2022, coupled with a policy rate of 22 percent in 2023 that severely restricted private-sector investment. By 2024, gradual policy adjustments and improved fiscal discipline allowed the policy rate to come down to 13 percent, offering limited respite, yet the broader challenges remained.

Against this backdrop, political discourse, particularly in developed nations, has increasingly centered on reducing public expenditure.

In the United States, President Donald Trump recently proposed establishing a Department of Government Efficiency (DOGE), led by Elon Musk, aimed at eliminating wasteful spending and cutting USD 2 trillion through extensive........

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