Tax evasion in iron and steel sector: FBR plans real-time monitoring

FBR Building

Islamabad, January 23, 2026 – The Federal Board of Revenue (FBR) has announced plans to tackle tax evasion and revenue leakage in Pakistan’s iron and steel sector through real-time production monitoring.

Under the initiative, steel manufacturers will provide infrastructure to deploy technology-agnostic solutions for tracking production output across the country. The project will cover:

• Steel Melting Units: Monitoring the production of billets and ingots through counting or weighing.

• Re-Rolling Units: Tracking output of rebars, girders, and sheets.

Selected vendors will install monitoring equipment, including video analytics cameras, laser counters, and IoT sensors, to capture production data and transmit it to an Industrial PC for product identification and weight/count recording. The system will also be integrated with the FBR database, using visual recognition, weight measurements, or unique identifiers to track all steel products nationwide.

Vendors are required to demonstrate system accuracy in real-world conditions, including high-temperature and dusty environments, and provide ongoing technical support, maintenance, and updates.

The procurement process will follow the Public Procurement Regulatory Authority (PPRA) Two-Stage Bidding Procedure, with installations expected to commence within two weeks of purchase orders.

The monitoring system will be deployed at raw material preparation, iron making, steel production, rolling, and forming facilities nationwide, covering items such as billets, slabs, ingots, rebars, wire, sheets, pipes, and direct reduced iron (DRI).

The initiative aims to enhance tax compliance, reduce revenue leakage, and improve transparency in Pakistan’s critical steel industry.