The Federal Board of Revenue (FBR) has expanded its electronic production monitoring system to additional industrial sectors, making digital monitoring mandatory for manufacturers of packaged milk, iron and steel, oil, and ghee across Pakistan.
According to S.R.O. 880(I)/2026 issued on May 20, 2026, the FBR announced that the production activities of registered persons engaged in these sectors will now be electronically monitored under Rule 150ZQR of Chapter XIV-BA of the Sales Tax Rules, 2006.
The notification was issued by the Revenue Division in exercise of powers conferred under Section 50 and Section 40C of the Sales Tax Act, 1990. The measure has been enforced with immediate effect.
The move is part of the FBR’s broader strategy to strengthen tax compliance, improve transparency in production reporting, and curb sales tax evasion through the use of digital monitoring technologies.
Over the past few years, the tax authority has increasingly relied on electronic monitoring and track-and-trace systems for various industries, including tobacco, sugar, fertilizer, cement, beverages, and bottled water production. The inclusion of packaged milk, iron and steel, oil, and ghee sectors reflects the government’s ongoing push to enhance revenue collection through technology-driven enforcement mechanisms.
Under the notified framework, manufacturers falling within the specified sectors will be required to integrate their production facilities with the FBR’s electronic monitoring system in accordance with the prescribed rules and procedures.
The notification came into force immediately upon issuance.
