Tech Desk 
Nov 12, 2025
A policeman walks past the Federal Board of Revenue (FBR) office building in Islamabad on August 29, 2018. — Reuters
The Federal Board of Revenue (FBR) is ramping up its efforts to monitor income tax returns across Pakistan using artificial intelligence (AI) and digital tools to audit over 7 million returns this year.
All returns where less than 25% of tax has been paid will be automatically included in the audit. In this way, the process will be easier and simpler, because those with high payments are excluded.
The audit will involve 8,000 Inland Revenue officers and 4,000 auditors. Sources within FBR said the whole process will be fully digital in nature, with identification of discrepancies through AI systems, while initial screening will be assisted through Microsoft Excel filters and formulas, according to the ProPakistani.
The audit will be conducted in three phases: one covering commercial and industrial returns, the second covering single-owner and registered companies, and the third covering the individual and salaried taxpayers.
FBR will take action against those taxpayers who provide wrong information or whose declared assets are not in line with their returns. The officials will also move against those who show exaggerated incomes on social media.
A total of 5.9 million tax returns were filed this fiscal year by October 31, contributing to the FBR's collection by an additional Rs. 9 billion. According to he report, this AI-powered system will ensure a better and impartial audit of the returns, covering returns from multiple dimensions for accuracy.
