Karachi, August 15, 2025 – If you’re part of Pakistan’s textile industry, it’s time to pay close attention. The Federal Board of Revenue (FBR) is preparing to roll out a massive audit exercise targeting the textile sector and its various sub-sectors nationwide.
According to official sources, the FBR plans to appoint about 13 specialized sector experts and experienced audit mentors in tax offices that have jurisdiction over textile-related businesses. These experts will cover a wide range of operations—carpet manufacturers in RTO Abbottabad, cotton ginning and mills in RTO Sukkur, and other ginning hubs in Hyderabad, Sahiwal, and Bahawalpur. Large-scale textile units will come under scrutiny in LTO Karachi, MTO Karachi, RTO Peshawar, RTO Multan, CTO Lahore, RTO Faisalabad, and RTO Gujranwala.
The move is part of a broader strategy to close Pakistan’s stubborn tax gap. The FBR has already issued Standard Operating Procedures (SOPs) to hire around 102 sector experts and audit mentors for deployment across the country. Recruitment is underway, with the aim of quickly mobilizing teams to examine compliance and uncover under-reporting.
A recent Tax Gap Report revealed a startling figure—Pakistan’s sales tax collection for 2022 stood at Rs1.69 trillion, while the potential was estimated at Rs2.24 trillion. That’s a shortfall of about Rs550 billion, or roughly 25% of the potential revenue left uncollected.
While food, beverage, tobacco, and wholesale trade are also on the radar, the textile sector remains one of the largest contributors to this gap. For industry players, the message is clear: compliance will be under a microscope, and the FBR is leaving no room for oversight.