LAHORE: The government continues to tighten the noose around those evading tax, and now it has decided to stamp out tax evasion in the cement sector, one of Pakistan’s largest industrial sectors.
The country’s tax body, Federal Board of Revenue (FBR), has issued a sweeping order to electronically monitor all cement bags all across the country.
As per the new notification, effective November 1, the delivery of cement bags without a tax stamp will be completely banned.
The tax agency introduced a track-and-trace system in the cement sector, and its strict monitoring will now ensure full compliance.
Every cement bag will be required to carry a unique ID marking, leaving no room for loopholes or illicit trade.
The crackdown is part of FBR’s push to increase transparency in the cement industry, the officials say. Whereas a move that comes in line with conditions set by the International Monetary Fund (IMF).
Suppliers who fail to comply may face heavy penalties, signaling the government’s determination to stamp out tax evasion in the cement sector, the industry insiders warn.
The cement sector witnessed robust increase in local distribution for October 2025 as deliveries are expected to jump to 11% month-over-month (MoM), reaching an estimated 3.79 million tons.
Compared with October 2024, year-on-year (YoY) dispatches are set to rise by 11%, signaling a strong rebound in construction activity.
In the North region, sales trends have been dramatic. Daily averages began at 120,000 tons in the first week, dropped sharply to 97,000 tons in the second week due to political unrest.
In the South, it was a steady performance, with daily sales ranging from 15,000 to 18,000 tons and the final week projected at 18,000 tons per day.
The anticipated MoM growth is fueled by a seasonal post-monsoon recovery, as construction ramps up and flood-related disruptions subside. The YoY jump is powered by increased housing and construction activity, coupled with a low base effect in the South.
