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FBR to use AI to detect tax return discrepancies, warns of heavy penalties

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According to sources, the Federal Board of Revenue (FBR) has decided to impose fines on taxpayers providing inaccurate information in income tax forms, concealing assets or tampering with financial data.

Sources stated the FBR has data on properties and assets owned by tax filers around the country which will be used to check the information declared in their income tax forms.

The FBR will automatically match the data submitted in tax returns with the data already available in its database to discover any irregularities. Sources said that artificial intelligence (AI) will also be used to check information and discover probable abnormalities.

Taxpayers who were caught hiding assets or doctoring paperwork were told they would face hefty penalties, sources said. Sources stated income tax department could impose fines up to 75 per cent of salaries for salaried persons filing wrong income tax filings.

They said that a fee of Rs1,000 per day might also be imposed if the penalty was not paid within the stipulated period.

Tax filers have a chance to correct problems in their income tax filings before October 15. Sources advised the taxpayers to cross-check facts stated in their return, including income and asset details and make required revisions within the time limit.

The move comes as the FBR is ramping up the use of automated technologies and artificial intelligence to scrutinize tax returns and find differences between the information provided and the accessible data. Dawn, in an October 7 report, stated the FBR has suggested regulations for electronic assessment of individual tax returns so that its automated system can identify possible factual and legal mistakes before taking further action.

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DG ISPR highlights Pakistan’s regional security challenges and peace efforts

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The Director General of Inter-Services Public Relations (DG ISPR) highlighted Pakistan’s regional security challenges and efforts to maintain peace during interactive sessions with students.

DG ISPR visited University of Lahore, University of Central Punjab (UCP) and King Edward Medical University (KEMU) where special sessions were arranged with students and faculty members. The meeting discussed domestic and international affairs, the geopolitical situation in the region, particularly Afghanistan, and the role of the Pakistan Army in maintaining regional peace.

Teachers and students publicly expressed their opinions and raised questions on various issues to which the military spokesperson gave detailed answers. Students welcomed the initiative to engage directly with the academic community and stressed the importance of holding such interactive sessions in the future.

They also congratulated the armed forces for their victory at Marka-e-Haq and prayed for the promotion of soldiers who were killed in the line of duty.

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NEPRA increases electricity price by Rs2.36 per unit under fuel adjustment

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The National Electricity Regulatory Authority (NEPRA) has hiked electricity tariffs by Rs 2.36 per unit of electricity under the Monthly Fuel Charge Adjustment (FCA), adding to the financial burden on electricity consumers.

According to a statement released by NEPRA, the increase is due to fuel cost adjustments in September 2026. The correction represents the difference between the actual fuel costs for electricity generation and the previously determined reference fuel costs.

According to the decision, electricity consumers will have to pay an additional charge of Rs 2.3673 for each company present in their accounts under the applicable FCA mechanism.

The adjustment will be reflected in electricity bills for November 2026.

Meanwhile, NEPRA has approved a Rs2.32 per unit increase in electricity rates for additional consumption by industrial and agricultural consumers, raising the applicable rate from Rs22.98 to Rs25.30 per unit. The decision has been sent to the federal government for further action and the revised rates are proposed to be effective from the billing month of November 2026.

As part of the existing rescue package, the government provides electricity price subsidies to industrial and agricultural consumers who exceed electricity consumption in the same period last year. The federal government has launched a three-year relief package under which power will be provided to agricultural consumers at Rs 22.98 per unit instead of Rs 38 per unit, while industrial consumers will get the same rate for additional electricity consumption instead of Rs 34 per unit.

However, NEPRA has now approved an increase in the discount rate per unit by Rs 2.32 to Rs 25.30.

The regulatory authority’s decision was taken through the casting vote of its chairman, while two members recorded their disagreement with the proposal.

NEPRA members Amna Ahmed and Maqsood Anwar Khan submitted dissenting notes, describing the proposed rate of Rs25.30 per unit as unjustified.

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PSX gains 7,477 points during the outgoing business week

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The Pakistan Stock Exchange (PSX) witnessed a positive trend in the outgoing trading week with the benchmark KSE-100 index gaining 7,477 points to close at 173,886 points.

According to the weekly market update, the index fluctuated between 9,614 points throughout the week, hitting a high of 176,604 and a low of 166,989. Trading activity remained strong with 4.28 billion shares worth Rs 142 billion changing hands during the week.

Meanwhile, market capitalization rose by Rs 52,000 crore to Rs 1,890.9 crore during the week.

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