Tax authority expands digital monitoring system to textiles, beverages and major industrial sectors
The Federal Board of Revenue expects to collect an additional Rs48 billion in tax revenue during fiscal year 2026-27 through expanded production monitoring systems across key industrial sectors, according to official documents.
The initiative forms part of the FBR’s broader revenue administration reforms aimed at reducing tax evasion and improving sales tax reporting through technology-driven monitoring mechanisms.
Major sectors brought under monitoring system
According to the documents, the FBR has developed production monitoring solutions for sectors identified with the largest tax gaps, particularly the textile industry.
The monitoring system has already been fully deployed in the sugar, cement, tobacco and fertilizer sectors, where authorities estimate a combined tax gap of around Rs160 billion.
Meanwhile, the textile and beverage sectors are currently in the pilot phase and are expected to come under full monitoring by the end of October 2026.
Hundreds assigned to operate monitoring network
Officials said the FBR has assigned 200 personnel to help operate and supervise the production monitoring systems.
Authorities believe real-time monitoring of production quantities will improve sales tax declarations and increase transparency in reporting by manufacturers.
Revenue gains projected in FY27
The FBR estimates that stronger monitoring and reporting compliance will generate Rs48 billion in additional revenue during FY27.
The effectiveness of the initiative will be measured through key performance indicators (KPIs), including growth in sales tax revenues from monitored facilities compared with the previous year after adjusting for nominal GDP growth.
Another KPI will track the total volume of goods identified and monitored through the system.
Part of wider digital tax reforms
The production monitoring initiative is part of Pakistan’s ongoing tax administration modernization drive, which also includes digital invoicing, CRM-based audits and automated compliance systems aimed at broadening the tax base and improving documentation of the economy.