Pakistan’s textile industry has strongly opposed a proposal by the Federal Board of Revenue (FBR) requiring textile mills to install surveillance cameras at their own expense, escalating tensions between manufacturers and tax authorities.
The FBR has proposed the installation of surveillance cameras in textile factories as part of its efforts to curb tax evasion and improve monitoring of production activities. However, textile mill owners have rejected the move, arguing that the financial burden of purchasing and installing the equipment would cost businesses millions of rupees at a time when the industry is already struggling with rising operational costs.
Industry representatives warned that making the installation of surveillance cameras mandatory without government financial support could force some factories to suspend operations. They stressed that the textile sector is facing severe economic challenges, including high energy costs, reduced competitiveness, and declining profitability.
Mill owners compared the proposal to Pakistan’s Safe City surveillance systems, noting that motorists are not required to pay for the cameras used to monitor traffic violations. They argued that if the FBR considers surveillance cameras necessary for tax enforcement, the tax authority should bear the installation and maintenance costs itself.
The textile sector also called on the FBR to broaden the scope of its monitoring initiative beyond textile mills. Manufacturers suggested including ginning and spinning units in the surveillance framework, arguing that a wider monitoring network could improve tax collection across the supply chain.
According to industry representatives, only around 180 textile mills are currently operational in Pakistan, while more than 1,200 ginning and spinning units remain active. They maintained that extending oversight to these sectors could potentially generate greater tax revenues for the government.
The disagreement highlights growing concerns within Pakistan’s textile industry over additional compliance requirements, as businesses continue to seek relief from rising costs and economic pressures.
