‘Lifestyle Monitoring Cell’: Pakistan uses AI to monitor influencers’ lifestyles in new tax crackdown

A man walks out of the Federal Board of Revenue (FBR) office in Islamabad, Pakistan, on July 4, 2024. (AFP/File)
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Updated 22 October 2025
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‘Lifestyle Monitoring Cell’: Pakistan uses AI to monitor influencers’ lifestyles in new tax crackdown

  • New FBR unit uses AI and social media analytics to spot undeclared wealth among influencers and elites
  • Authorities flag four million suspected tax evaders as part of push to expand Pakistan’s narrow tax base

ISLAMABAD: Pakistan has launched an artificial intelligence–powered “Lifestyle Monitoring Cell” to track high-net-worth individuals, social media influencers and professionals whose public displays of wealth do not match their declared income, tax officials said this week. 

The initiative, run by the Federal Board of Revenue (FBR) under its Intelligence and Investigation Wing, aims to identify potential tax evasion by analyzing online content, spending habits and assets showcased on social media platforms such as Instagram, TikTok, Facebook, YouTube and LinkedIn.

“We have identified around four million potential tax evaders through this newly formed monitoring cell and other methods such as physical surveys and media monitoring,” said Hamid Attique Sarwar, a senior Inland Revenue official.

“Out of these, around 10 percent, about 0.4 million people, are now the focus of our attention.”

Pakistan, with a population exceeding 240 million, has one of the lowest tax-to-GDP ratios in South Asia. The government of Prime Minister Shehbaz Sharif has set a record collection target of Rs14.13 trillion ($47.4 billion) for the 2025–26 fiscal year — an increase of 9 percent over last year. The target forms part of efforts to meet structural reform benchmarks under a $7 billion IMF bailout program, which calls for an increase in the tax-to-GDP ratio.

To meet this goal, Sarwar said, the FBR has sent warning messages to around 8 million individuals whose lifestyles appear inconsistent with their declared incomes.

“We told them that FBR has an eye on them so that they voluntarily stop tax evasion,” he said.

“WE DON’T HATE RICH PEOPLE”

According to an official notification issued last month, the new lifestyle monitoring cell operates under the FBR’s Directorate General of Intelligence and Investigation–Inland Revenue and is authorized to estimate hidden income, analyze social media data and initiate inquiries under Pakistan’s tax and anti–money laundering laws.

The system builds digital profiles of individuals, cross-checks them against the national tax database and compiles evidence-based reports for further investigation.

“Our purpose is not to catch people but to improve things in Pakistan when it comes to tax collection,” Sarwar said. “We want everyone to pay tax so that we reduce the burden on the salaried class, which is heavily taxed.”

Officials said the cell had identified many individuals who drive luxury cars, travel frequently abroad, or live in multimillion-dollar homes while declaring minimal income.

One case involved a person owning a Rs4 billion ($14.14 million) house and multiple luxury vehicles but reporting a monthly income of only $1,400.

Last year, Sarwar said, the FBR collected Rs800 billion ($2.8 billion) through similar enforcement measures, including a 60 percent rise in tax revenue from sugar mills alone.

The agency works with the National Database and Registration Authority (NADRA) and other government departments to verify financial data, with 25 field teams tracking high-net-worth individuals across the country.

The FBR is now also reviewing the declared incomes of some of Pakistan’s top singers, fashion designers and artists as part of the ongoing probe.

“We do not hate rich people,” Sarwar added. “Our purpose is that they should pay more taxes.” 


Pakistan graft survey echoes IMF warning on weak governance, public dissatisfaction

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Pakistan graft survey echoes IMF warning on weak governance, public dissatisfaction

  • Most Pakistanis say they were not compelled to pay bribes, but distrust remains high in anti-corruption efforts
  • PM Shahbaz Sharif calls report a recognition of his government’s efforts to fight corruption, promote transparency

ISLAMABAD: Governance weaknesses flagged by the International Monetary Fund (IMF) appeared to align with findings from Pakistan’s latest corruption perception survey, analysts said on Tuesday, as Transparency International Pakistan (TI-Pakistan) reported widespread public dissatisfaction with the state’s accountability mechanisms.

TI-Pakistan’s National Corruption Perception Survey (NCPS) 2025 found that 58 percent of respondents fully or partly agreed that the IMF program and Pakistan’s removal from the Financial Action Task Force’s grey list had helped stabilize the economy.

“Encouragingly, a majority of Pakistanis (66 percent) nationwide reported that they did not experience a situation where they felt compelled to offer a bribe to access any public service,” said the survey. “Sindh recorded the highest proportion of respondents paying a bribe to access public service (46 percent), followed by Punjab (39 percent), Balochistan (31 percent) and Khyber Pakhtunkhwa (20 percent).”

In this context, 77 percent said they were unhappy with the government’s anti-corruption performance.

However, Prime Minister Muhammad Shehbaz Sharif expressed satisfaction over the report in a statement, saying “a large majority of citizens said they did not face corruption during our government’s tenure” which is “recognition of our efforts to fight corruption and promote transparency.”

“It is highly encouraging that most citizens considered the government’s measures for economic recovery to be successful,” he said.

“We worked on a priority basis to establish a system grounded in merit and transparency across all sectors of government, and we are continuing to build on these efforts,” he added.

Economist and former finance ministry adviser Dr. Khaqan Najeeb said the survey highlighted the same structural weaknesses identified by the IMF’s Governance and Corruption Diagnostic, published on Nov. 20 at the international lender’s request, which said Pakistan suffers from “persistent and widespread corruption vulnerabilities” rooted in a state-dominated economy, weak regulatory capacity, and inconsistent enforcement.

“Transparency International Pakistan’s National Corruption Perception Survey does suggest progress in reducing low-level, day-to-day bribery, but it does not contradict the IMF’s governance findings,” he told Arab News. “Instead, it highlights that Pakistan’s real challenge lies in deeper, systemic weaknesses in transparency, oversight and institutional accountability.”

“While public perception has improved, it does not mean the underlying governance issues identified by the IMF have been resolved,” he argued, adding that addressing those will require sustained reforms, stronger institutions and consistent enforcement.

Political analyst Mazhar Abbas said the report was going to be used by the government to bolster its economic narrative.

“Survey reports have usually been tilted in favor of the government, and this report is no different,” he told Arab News. “The government will certainly use it to support its narrative of an improved economy, as the report states that a majority of respondents partially or fully agree that the government has successfully stabilized the economy through the IMF agreement and by exiting the FATF grey list.”

Abbas added it was difficult to either challenge or endorse the findings of the report without knowing who was interviewed and who the respondents were.

“The police have consistently been at the top of Transparency International’s corruption perception reports, whereas there may be other organizations where the frequency and volume of corruption are even higher,” he continued, adding that since the police are a public-dealing organization and consistently top the corruption perception index, it suggested that most respondents are from the general public, who may either lack access to or knowledge of corrupt practices in other organizations.

Islamabad-based social-sector development consultant Muhammad Qasim Jan said the survey should be seen as a barometer of public sentiment rather than an empirical measure of corruption.

“The National Corruption Perception Survey 2025 offers a sobering snapshot of how Pakistanis view corruption and accountability,” he told Arab News. “At the same time, the absence of basic methodological detail means the results should be interpreted with caution, especially when citing national percentages or making population-wide claims.”