PM Shehbaz Orders FBR to Expand Automated Production Monitoring Across Industries by Year-End

Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to complete the rollout of automated production monitoring systems across Pakistan’s manufacturing sectors by December 31, 2026, as the government steps up efforts to improve tax compliance and reduce revenue leakage.

The system uses cameras and digital monitoring equipment to track production activity for sales-tax purposes. The government wants the technology to help identify discrepancies between actual production, reported sales and tax payments.

The directive was issued during a meeting in Islamabad to review progress on FBR reforms, according to an official statement released by the Ministry of Information and Broadcasting on October 13.

Which Industries Already Have Production Monitoring Systems?

Officials told the meeting that the monitoring system had been fully installed in five sectors: sugar, cement, tobacco, tiles and fertiliser.

Installation was underway in the textile, packaged water, packaged juice and packaged milk industries. Equipment procurement for these sectors had reportedly been completed.

The government also outlined procurement schedules for additional industries.

The dates for equipment procurement were targets reported at the meeting, not confirmation that every installation has since been completed. The overall target is for monitoring systems to become operational across the listed manufacturing sectors by December 31, 2026.

How the FBR’s Automated Monitoring System Works

Automated production monitoring is intended to give tax authorities a clearer view of activity on manufacturing production lines.

Camera-based equipment can record production processes, while digital monitoring arrangements can help authorities assess whether reported production and sales figures are consistent with observed activity and applicable tax records.

The approach forms part of the government’s wider move towards a more digital and less manual tax-administration system.

However, monitoring equipment does not by itself establish that a business has evaded tax. Any suspected discrepancy still needs to be assessed against the company’s records, applicable rules and relevant circumstances.

PM Warns Businesses Against Withholding Sales Tax

During the meeting, Shehbaz Sharif warned that businesses collecting sales tax from consumers but failing to deposit it in the national exchequer should not expect concessions.

He directed the authorities to remove obstacles that were delaying the installation of automated monitoring equipment and praised manufacturers that were voluntarily complying with the government’s measures.

The government says the wider objective is to improve enforcement, narrow the gap between actual and potential tax collection and ensure that businesses meet their legal obligations.

Textile Companies Recognised for Cooperation

Officials told the prime minister that some businesses in the textile sector had resisted installation of monitoring systems. However, several companies had voluntarily installed the equipment.

The companies named in the official reporting included Nishat Mills, Alkaram Textile, Alkaram Cotton Mills, J.K. Spinning Mills, Surti Enterprises, Interloop Limited, Faisal Spinning Mills, Ibrahim Fibres Limited, Sapphire Textiles Limited and Nishat Chunian.

The prime minister appreciated their cooperation.

Their participation was presented as an example of voluntary compliance as the government works to extend the monitoring system to more manufacturing businesses.

Government Reports Rs1.3 Trillion in Additional Tax Collection

The meeting was also briefed on a review of Pakistan’s tax potential and the gap between the amount collected and the revenue that could potentially be raised through stronger compliance and enforcement.

According to the official briefing, government measures over the previous three years had generated an additional Rs1.3 trillion in tax revenue, representing a 40% increase in tax collection.

These figures were presented to the prime minister during the meeting. The announcement did not, by itself, provide a detailed breakdown of the additional collection by sector or explain how much could be attributed specifically to automated production monitoring.

Shehbaz Sharif also directed the Ministry of Information Technology to conduct audits of production monitoring systems in sectors beyond cement to assess how effectively the technology was working.

What the New Monitoring Rules Could Mean for Manufacturers

As the rollout expands, manufacturers in the affected sectors may need to coordinate with authorised equipment providers, prepare production lines for installation and ensure their reporting systems comply with the applicable FBR requirements.

The system could increase scrutiny of production and sales-tax records, particularly where reported figures differ from information collected through monitoring.

For businesses, clear implementation guidance and reliable equipment will be important. For tax authorities, the challenge will be to ensure that the data is accurate, secure and used consistently under the relevant legal framework.

The impact on government revenue will depend on implementation, compliance and enforcement—not simply the number of cameras installed.

What Happens Next?

The immediate priority is meeting the December 31, 2026 deadline. Equipment procurement and installation must progress across the remaining sectors, followed by checks to ensure that systems are operating effectively.

Further updates from the FBR will be important for manufacturers seeking clarity on installation requirements, authorised vendors and compliance procedures.

The government’s approach signals a continued push towards digital tax enforcement, but its success will ultimately depend on whether monitoring produces reliable information and improves the collection of taxes legally due.

Conclusion

Prime Minister Shehbaz Sharif has directed the FBR to complete automated production monitoring across manufacturing sectors by the end of 2026. The system is already installed in several industries, while other sectors remain in different stages of procurement and implementation.

The government expects the rollout to improve sales-tax compliance and reduce revenue leakage. Its effectiveness will depend on completing installations, auditing the technology and ensuring that businesses are assessed fairly under the law.

Editorial note: Industry status and revenue figures in this article reflect official briefings reported on October 12–13, 2026. Procurement deadlines and the December 31 rollout target should not be treated as proof that all systems have already become operational.