The Federal Board of Revenue (FBR) has issued a final directive requiring textile mills across Pakistan to install surveillance camera systems by July 1, 2026, warning that non-compliant facilities will be declared non-operational for regulatory and tax purposes. The move is part of the government’s broader effort to improve documentation, enhance transparency, and strengthen tax compliance within the country’s largest export-oriented industry.
According to reports, approximately 180 textile mills have received final notices from the FBR. Mills that fail to install the required surveillance systems within the stipulated timeframe risk enforcement action, while the complete cost of purchasing, installing, and maintaining the camera systems will be borne by the mill owners.
The surveillance initiative is designed to enable real-time monitoring of production activities, raw material movement, and finished goods, allowing tax authorities to improve oversight and reduce opportunities for tax evasion. Similar digital monitoring mechanisms have already been implemented in Pakistan’s sugar, cement, and fertilizer industries as part of the FBR’s ongoing documentation drive.
The directive has drawn concerns from the textile industry, with stakeholders arguing that the additional investment comes at a time when manufacturers are already facing rising energy costs, financing constraints, and increasing international competition. Industry representatives have maintained that the installation and operational expenses will add further financial pressure on exporters. Despite these objections, the FBR has decided to proceed with the implementation as scheduled.
As Pakistan’s textile sector remains the country’s largest export earner and a major source of employment, the implementation of digital monitoring measures is expected to have significant implications for industry compliance and governance. The initiative also signals the government’s continued focus on leveraging technology to strengthen revenue collection and industrial documentation across key manufacturing sectors.
