Karachi, August 16, 2025 – The Federal Board of Revenue (FBR) has launched an extensive audit initiative targeting the real estate sector in key cities across Pakistan, aiming to curb tax evasion in property transactions.
According to official sources, the exercise will cover jurisdictions under the Medium Tax Office (MTO) Karachi, Regional Tax Office (RTO) Hyderabad, Corporate Tax Office (CTO) Lahore, RTO Rawalpindi, RTO-II Karachi, RTO Quetta, and RTO Islamabad.
The scope of the audit will extend to builders, developers, construction companies, and real estate businesses operating under these tax zones.
To ensure the effectiveness of the campaign, the FBR has decided to deploy at least seven sector specialists and experienced audit mentors across the selected tax offices. These experts will not only monitor compliance but also provide technical guidance to tax officers handling sensitive property cases.
Officials revealed that the FBR has already begun the process of hiring auditors for nearly 42 different sectors, but the real estate industry remains a top priority. The sector has historically been a major source of undocumented transactions, leading to significant revenue leakages for the national exchequer.
Experts note that Pakistan’s real estate market has long provided opportunities for tax evasion due to underreporting of property values and informal cash dealings. Despite multiple crackdowns in the past, loopholes allowed many investors and developers to escape scrutiny. This time, however, the FBR has pledged stricter oversight and tougher enforcement mechanisms to ensure compliance.