Fintech and fiscal policy: analysis of China–Pakistan bilateral trade agreement (Phases I and II)

Purpose The integration of digital trade has changed the nature of international trade. Fintech-assisted international digital trade in goods and services reduces costs and increases trade diversity between economies. The aim of this paper is to examine the China–Pakistan bilateral trade agreement (BTA) Phase I and Phase II in the context of corporate tax and how financial technological revolution can facilitate the sustainable economic development of Pakistan. Design/methodology/approach The regression analysis along with review of previous empirical literature is used for this investigation. The data of financial statements are collected from Pakistan Stock Exchange. Findings The findings of the study reveals that corporate tax payments surge due to increase in exports to China in both the phases of BTA. Moreover, Pakistan is seriously adopting the digital taxation system for corporation, consequently, the tax revenue will be further enhanced, which lead to sustainable economic development of Pakistan. Originality/value To the best of my knowledge, this paper is unique in a sense that it will assist the regulators in making digital trade policies for innovation in sectors. Furthermore, it will support the corporate managers to establish the financial strategy in connection to the contemporary concept of fintech.