Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to complete the installation of digital production monitoring systems across major manufacturing sectors by December 31, aiming to improve tax compliance and increase revenue collection.
Chairing a meeting in Islamabad on Friday to review FBR reforms, the prime minister instructed tax authorities to ensure production monitoring for sales tax across all manufacturing sectors by the end of the year. Officials briefed the meeting on progress and results achieved in industries where the system has already been introduced.
According to an official statement issued by the Prime Minister’s Secretariat, the digital monitoring system has been fully installed in the sugar, cement, tobacco, tiles and fertiliser sectors.
Installation is underway in the textile, packaged water, packaged juice and packaged milk industries, with equipment procurement for these sectors already completed.
The meeting was informed that equipment purchases for the steel, poultry and tyre sectors would be completed by October 15, while procurement for the tea, household electronics, leather, paper and board, and oil and ghee industries was expected to conclude by October 30.
Officials said the monitoring systems across these sectors were expected to become fully operational by December 31.
The meeting was also informed that some businesses in the textile sector had resisted the installation of digital monitoring systems. However, Nishat Mills, Al-Karam Textile, Al-Karam Cotton Mills, J.K. Spinning Mills, Soorti Enterprises, Interloop Limited, Faisal Spinning Mills, Ibrahim Fibers Limited, Sapphire Textiles Limited and Nishat Chunian had voluntarily installed the systems in line with government measures.
Prime Minister Shehbaz appreciated the companies for their cooperation and encouraged other businesses to follow their example.
Officials also presented a report assessing the gap between Pakistan’s actual tax collection and its potential revenue, highlighting opportunities to generate additional income through improved compliance and stronger enforcement.
The meeting was informed that government measures implemented over the past three years had resulted in an additional Rs1.3 trillion in tax revenue, representing a 40 per cent increase in collections. Officials attributed the additional revenue to enforcement initiatives.
The FBR briefed participants on the use of cameras and the faceless system to strengthen digital production monitoring and improve oversight of manufacturing activities.
The prime minister directed authorities to remove all obstacles to installing automated production monitoring systems. He said businesses that collected sales tax from consumers but failed to deposit it into the national exchequer did not deserve concessions.
He also praised manufacturers voluntarily adopting the monitoring system, reiterating the government’s commitment to achieving Pakistan’s full tax potential and ensuring effective enforcement of tax laws.
The prime minister commended the FBR Transformation Team for its continuous efforts in preparing a comprehensive assessment of the gap between potential tax revenue and actual collections. Officials involved in preparing the report were also presented with shields in recognition of their work.
To evaluate the effectiveness of the production monitoring system, Shehbaz Sharif directed the Ministry of Information Technology to conduct audits in other sectors as well.
He described collecting taxes in line with the country’s full revenue potential as a genuine service to the public.
The meeting was attended by Federal Ministers Azam Nazeer Tarar, Dr Musadik Malik, Ahad Khan Cheema and Shaza Fatima Khawaja, Minister of State Bilal Azhar Kayani, Prime Minister’s Adviser Haroon Akhtar and other senior officials.
