The Federal Board of Revenue (FBR) is considering introducing AI-based monitoring systems as part of the upcoming tax enforcement reforms in the upcoming federal budget for 2026-27. According to the proposal presented at a meeting, AI tools would be used to detect false information in tax returns, identify underreporting and non-reporting of income and flag discrepancies through data cross-checking. This reform, amongst others, aims to increase transparency, expand the tax base and modernize Pakistan’s tax administration through tech-driven solutions.