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The Federal Board of Revenue (FBR) has initiated a massive AI-driven audit to scrutinize over 7 million income tax returns filed across Pakistan, marking a major digital shift in the country’s tax enforcement system. The move aims to enhance transparency, identify tax evasion, and improve compliance through technology.
According to official sources, all tax returns with less than 25% tax paid will be automatically flagged for audit. The process will involve around 8,000 Inland Revenue officers and 4,000 auditors using AI tools and digital analytics to detect discrepancies.
An FBR official said,
“The new AI system will ensure fair and data-backed audits, leaving little room for manual interference.”
The audit will proceed in three stages beginning with industrial and commercial entities, followed by registered companies, and finally, individual and salaried taxpayers.
With 5.9 million returns filed by October, the FBR has already collected an additional Rs. 9 billion. Authorities expect the AI-led approach to strengthen accountability and expand the country’s tax base.
