Federal Board of Revenue (FBR) is implementing a Production Monitoring Solution as part of its broader efforts to modernize tax administration through technology. The initiative is being introduced under FBR’s Transformation Plan, which was approved by the Prime Minister, and is aimed at improving how industrial production is monitored while increasing transparency and supporting better tax compliance. By introducing technology-based production monitoring, FBR intends to obtain more reliable information from selected industrial sectors and improve the administration of taxes associated with manufacturing activity. The initiative is part of the Board’s wider technology-focused approach to tax administration, with the new system expected to provide greater visibility into production activity and support more efficient monitoring by relevant authorities.
FBR has selected vendors to install the Production Monitoring Solution across eight major industrial sectors. These sectors include sugar, cement, textile, beverages, packaged milk, bottled water, packaged juices and tiles. The selection of these industries places the new monitoring system across a range of manufacturing activities, allowing FBR to apply technology-based monitoring to sectors with significant production operations. The solution is expected to help provide more structured production information to tax authorities and support the verification of production-related data. With industrial activity being monitored through a dedicated technological system, FBR aims to reduce reliance on traditional monitoring methods and improve the availability of information needed for tax administration.
The Production Monitoring Solution is also intended to support greater transparency between industrial production and tax reporting. By improving access to production information, FBR can enhance its ability to assess whether reported production levels are consistent with information available through the monitoring system. This can support better tax compliance by helping authorities identify discrepancies that may require further examination. The technology-based approach also gives field formations and concerned offices a common system for monitoring covered industries, potentially making the collection and review of production-related information more consistent. However, FBR has not publicly disclosed detailed technical specifications of the solution, including the exact technologies being deployed, how data will be transmitted or the specific production indicators that will be monitored in each sector.
Chairman FBR has directed all concerned offices and field formations to ensure that installation of the Production Monitoring Solution is completed by December 2026. The deadline sets a clear implementation target for the Board and the selected vendors as the initiative moves from planning and vendor selection to deployment across the identified industries. Once installed, the system is expected to provide FBR with improved production monitoring capabilities while supporting transparency and more effective tax compliance measures. The initiative represents another step in FBR’s ongoing transformation of tax administration through technology, with its initial deployment across eight industrial sectors providing a framework that could potentially be extended to other areas of the economy in the future. For now, FBR’s immediate focus remains completing the installations within the December 2026 deadline and ensuring that the new monitoring system becomes operational across the selected industrial sectors.
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