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.”
