Pakistan’s Federal Board of Revenue (FBR) has uncovered approximately Rs 30 billion in annual sales tax evasion within the tile manufacturing sector and announced a comprehensive plan to deploy monitoring cameras across 17 high-risk industries to improve transparency and compliance. FBR Chairman Rashid Langrial informed the Senate Finance Committee that the measure is part of a broader effort to tackle under-reporting and unreliable production data that has long hampered revenue collection in the sector.
Under the new directive, tile manufacturers will be required to install AI-enabled cameras at kilns, packaging areas, and entry and exit points to track production in real time. Langrial emphasized that companies refusing to comply with the monitoring requirements would be forced to halt operations, highlighting the government’s strict stance on industrial tax compliance. To accommodate operational concerns, the FBR reduced the number of cameras per tile facility from sixteen to four, while ensuring that production output can still be accurately monitored. The chairman noted that similar monitoring systems have already been installed in sugar mills, a sector where government ministers hold business interests, generating an estimated Rs 76 billion in additional revenue this fiscal year. Cement factories are also being monitored, with expected additional collections of Rs 102 billion.
Langrial addressed concerns regarding potential revenue shortfalls, clarifying that no new tax measures have been planned yet to cover temporary gaps, and reiterated the government’s commitment to leveraging technology for effective compliance. The AI-driven monitoring system is designed to collect production data without requiring physical presence of officials, providing real-time reporting while safeguarding operational confidentiality. FBR officials argued that these measures are necessary to prevent deliberate under-reporting, noting that accurate monitoring of production has long been a challenge across Pakistan’s industrial sectors.
The FBR’s initiative reflects a broader push toward automation and digital oversight in Pakistan’s regulatory landscape. By deploying smart monitoring systems across multiple industries, the government aims to enhance accountability, improve revenue collection, and ensure fair competition. Lawmakers highlighted that the use of technology could set a precedent for other sectors facing similar compliance challenges. This move comes amid ongoing efforts to integrate AI and automated tracking tools into Pakistan’s industrial monitoring framework, signaling a growing reliance on technology to enforce transparency while balancing investor interests and operational feasibility.
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