Pakistan’s tax authorities are working to expand digital monitoring of industrial production across major manufacturing sectors by December 31, 2026, as the government seeks to improve sales tax compliance.
The Federal Board of Revenue has already installed monitoring systems in the sugar, cement, tobacco, tiles and fertiliser sectors, according to information presented at a government review meeting.
Equipment installation is also under way in textiles, packaged water, packaged juice and packaged milk. Other sectors are scheduled to follow as the programme expands.
Digital monitoring is intended to give tax authorities better visibility into industrial output and reduce reliance on information reported solely by businesses. Cameras and automated systems are among the tools being introduced.
The initiative could improve the consistency of tax reporting, but its effectiveness will depend on reliable equipment, accurate data and safeguards against technical failures or incorrect reporting.
For businesses, the rollout may require adjustments to production systems and compliance procedures. Authorities will also need to ensure that the rules are applied consistently across sectors.
The deadline creates a clear implementation target, although completing installations will not by itself guarantee higher revenue. The longer-term measure of success will be whether the system improves compliance and reduces the gap between actual and potential tax collection.
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