KARACHI, May 25, 2025 — In a bold and sweeping move, the Federal Board of Revenue (FBR) has turned up the heat on Karachi’s taxpayers, launching one of the most aggressive audit campaigns in recent memory.
With an unmistakable focus on the country’s financial capital, the FBR is deploying a powerful arsenal of third-party auditors to probe individuals and companies for tax irregularities.
The FBR’s intensified audit initiative has seen the appointment of over 520 private-sector auditors, with a staggering 44% posted exclusively in Karachi. This overwhelming presence signals the FBR’s sharpened intent to maximize revenue collection, tighten compliance, and issue substantial tax demands. It’s a clear message: Karachi is ground zero for audit enforcement in 2025.
In what officials are describing as an “audit army,” Karachi’s tax zones have been stacked with auditors—99 alone at the Large Taxpayers Office (LTO) Karachi, the crown jewel of the FBR’s tax machinery. The LTO oversees major corporates, most of which are listed on the Pakistan Stock Exchange and regulated by the Securities and Exchange Commission of Pakistan (SECP). These firms are already under intense regulatory scrutiny, making the FBR’s audit move all the more controversial.
Additional deployments include 54 auditors at the Corporate Tax Office Karachi, 35 at the Medium Taxpayers Office, and 20 each at RTO 1 and RTO 2 Karachi. The scale of this audit offensive has sparked debate inside the tax community, with critics warning of potential conflicts of interest. There are concerns that third-party auditors might show leniency toward firms with ties to their training institutions or previous affiliations.
FBR insiders, especially those stationed in Karachi, fear history may repeat itself. Previous audit experiments involving private firms reportedly collapsed under accusations of inefficiency and misuse of taxpayer money.
Nonetheless, the FBR appears determined. Karachi is once again at the epicenter of its audit operations—five key tax offices in the city are bracing for intensified scrutiny. Whether this audit surge brings in billions or triggers backlash, one thing is certain: the FBR is watching Karachi like never before.