Pakistan has taken a bold leap into the digital age of tax enforcement, unveiling a high-tech “Lifestyle Monitoring Cell” powered by artificial intelligence to crack down on tax evasion among the nation’s wealthy elite, social media influencers, and high-profile professionals. Launched in late October 2025 under the Federal Board of Revenue’s (FBR) Intelligence and Investigation Wing, this initiative represents the country’s first foray into using advanced AI to scrutinize the online lives of its citizens in search of undeclared wealth.
The scale of the operation is staggering. By scouring platforms such as Instagram, TikTok, YouTube, Facebook, and LinkedIn, the FBR’s new unit has already identified around four million potential tax evaders. Of these, approximately 400,000 individuals—about 10 percent—are now under detailed scrutiny, according to Hamid Attique Sarwar, a senior Inland Revenue official, as reported by both Gulf News and Arab News. The monitoring cell’s algorithms hunt for telltale signs of luxury: designer wardrobes, imported cars, private jet selfies, extravagant vacations, and lavish destination weddings. If someone’s public display of wealth doesn’t match their declared income, the system flags them for further investigation.
Pakistan, with a population exceeding 240 million, has long struggled with one of the lowest tax-to-GDP ratios in South Asia. This chronic shortfall has placed immense pressure on the country’s finances, prompting the government of Prime Minister Shehbaz Sharif to set an ambitious tax collection target of Rs14.13 trillion ($47.4 billion) for the 2025–26 fiscal year—a 9 percent increase over the previous year. This target is a key benchmark under a $7 billion International Monetary Fund (IMF) bailout program that demands broadening the tax base and raising state revenues.
The FBR’s approach is as much about deterrence as it is about enforcement. Nearly eight million citizens have received warning messages after the AI systems detected that their social media lifestyles appeared far beyond their declared incomes. “We told them that FBR has an eye on them so that they voluntarily stop tax evasion,” Sarwar explained in an interview with Arab News. The message is clear: the digital era leaves little room for hiding conspicuous consumption.
But what exactly does the Lifestyle Monitoring Cell do? The cell is authorized to estimate hidden income, cross-check digital profiles with the national tax database, and initiate inquiries under Pakistan’s tax and anti-money laundering laws. Its remit extends beyond social media, gathering spending data from wedding halls, dress designers, jewelers, and beauty salons to track major life events and expenditures that might reveal hidden wealth. “Our purpose is not to embarrass people. It is to build a culture where showing off wealth doesn’t come at the cost of honesty,” Sarwar told Gulf News. The FBR insists that deleting incriminating posts won’t help, as digital evidence is quickly archived for future reference.
Some of the cases uncovered are eye-opening. One individual, for example, owned a Rs4 billion ($14.14 million) mansion and multiple luxury vehicles, yet reported a monthly income of just $1,400. Others have been flagged for hosting extravagant weddings, driving imported cars, or living in multimillion-dollar homes while declaring meager earnings. The FBR is now reviewing the declared incomes of top Pakistani singers, fashion designers, and influencers in cities such as Rawalpindi, Lahore, Bahawalpur, and Islamabad, with several high-profile cases already prepared for prosecution.
The technical sophistication of the operation is matched by its scale. Over 100,000 social media accounts are monitored daily, with AI algorithms comparing visible spending patterns to reported incomes. The FBR collaborates closely with the National Database and Registration Authority (NADRA) and other government departments to verify financial data, and 25 field teams have been deployed across the country to track high-net-worth individuals. Last year alone, similar enforcement measures helped the FBR collect Rs800 billion ($2.8 billion), including a remarkable 60 percent rise in tax revenue from sugar mills, according to Sarwar.
For many Pakistanis, the crackdown is a long-overdue attempt to address deep-rooted inequalities in the tax system. The salaried class has traditionally borne the brunt of the country’s tax burden, while the wealthy have often managed to avoid scrutiny. “We don’t hate rich people. We just want them to pay their fair share so the burden doesn’t fall solely on the salaried class,” Sarwar emphasized in both Gulf News and Arab News reports. He added, “Our purpose is not to catch people but to improve things in Pakistan when it comes to tax collection. We want everyone to pay tax so that we reduce the burden on the salaried class, which is heavily taxed.”
Still, the move has sparked debate. Some argue that public shaming or aggressive monitoring could discourage entrepreneurship or drive wealth underground. Others worry about privacy and the potential for misuse of personal data. Yet, officials insist that the system is designed to be evidence-based and fair, with digital profiles cross-checked against official tax records before any action is taken. “We do not hate rich people,” Sarwar reiterated. “Our purpose is that they should pay more taxes.”
The government’s broader goal is to foster a new culture of tax compliance, one where flaunting wealth on social media comes with an expectation of transparency and responsibility. The FBR’s message is that Pakistan is entering a new era—one where digital footprints are as revealing as bank statements, and where the gap between public image and private reality is shrinking fast.
It remains to be seen how effective the Lifestyle Monitoring Cell will be in the long run, and whether it can truly shift the culture of tax evasion that has persisted for decades. But for now, the initiative stands as a bold experiment in digital governance—one that could serve as a model for other countries grappling with similar challenges.
With the world watching, Pakistan’s move signals a new chapter in the global fight against tax evasion—one where artificial intelligence, social media, and old-fashioned detective work come together in the pursuit of fiscal fairness.