ISLAMABAD: The Federal Board of Revenue (FBR) is expecting to generate an additional Rs48 billion in tax revenue during fiscal year 2026-27 through the expansion of digital production monitoring systems across major industrial sectors.
According to official documents, the initiative is part of the FBR’s broader tax administration reforms aimed at curbing tax evasion, improving sales tax reporting, and strengthening compliance through technology-based monitoring mechanisms.
The tax authority has developed production monitoring solutions for industries identified as having significant tax gaps, with particular focus on the textile sector.
Officials said the monitoring system has already been fully implemented in the sugar, cement, tobacco, and fertilizer industries, where authorities estimate a combined tax gap of nearly Rs160 billion.
Meanwhile, the textile and beverage sectors are currently undergoing pilot testing and are expected to come under complete digital monitoring by the end of October 2026.
To support the initiative, the FBR has deployed around 200 personnel responsible for operating and supervising the monitoring network across different industrial sectors.
Authorities believe that real-time tracking of production volumes will improve transparency, strengthen sales tax declarations, and reduce underreporting by manufacturers.
The FBR projects that enhanced compliance and stronger reporting through the monitoring framework will help generate Rs48 billion in additional tax revenue during FY27.
Officials said the success of the initiative will be evaluated through key performance indicators (KPIs), including growth in sales tax collections from monitored industries after adjusting for nominal GDP growth.
Another KPI will assess the total quantity of goods identified and monitored through the digital system.
The production monitoring project forms part of Pakistan’s wider digital tax reform agenda, which also includes digital invoicing, automated compliance systems, and CRM-based audits aimed at broadening the tax base and improving economic documentation.







