PM Shehbaz sets Dec deadline for FBR tax monitoring system

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Shehbaz orders comprehensive review and third-party audit of Islamabad’s Danish IT Park project

Prime Minister Shehbaz Sharif has called for an effective sales tax collection mechanism across all segments of Pakistan’s manufacturing sector, stressing that the government must collect taxes in line with the country’s full revenue potential.

Chairing a review meeting on Federal Board of Revenue (FBR) reforms, the prime minister directed officials to remove obstacles to installing automated production monitoring systems and ensure their completion by the end of this year. He also chaired a separate meeting on the Danish IT Park in Islamabad, ordering a comprehensive case study and third-party audit of the project.

The prime minister stressed that an effective sales tax collection system covering all segments of manufacturing was essential to closing the gap between actual tax receipts and the sector’s potential.

He directed the relevant authorities to complete the production monitoring system by December 31, adding that camera-based monitoring under a “faceless” system was being made more effective.

Shehbaz instructed officials to remove all obstacles delaying the installation of automated monitoring equipment. He said businesses that collect sales tax from consumers but keep the money instead of depositing it with the government deserved no leniency.

The prime minister also praised businesses that voluntarily install production monitoring systems, saying all necessary measures would be taken to realise the country’s full tax potential.

During the meeting, officials briefed the prime minister on the installation of the tax monitoring system across different manufacturing industries.

The system has already been installed in the sugar, cement, tobacco, tiles and fertiliser sectors. Installation is currently underway in the textile, bottled water, juice and milk industries.

According to the briefing, procurement of equipment for additional sectors has been completed, while equipment for the steel, poultry and tyre industries is scheduled to be procured by October 15.

Procurement for the tea, home appliances, leather, paper, and oil and ghee sectors is due to be completed by October 30.

The government’s stated target is to make monitoring systems fully operational across all manufacturing sectors by December 31.

Shehbaz Sharif commended the team that assessed the manufacturing sector and estimated its tax potential, describing its work as an important contribution to improving revenue collection.

He praised the team for working tirelessly to identify the gap between potential and actual tax receipts and for producing what he described as an excellent assessment of the country’s tax potential.

The prime minister also presented shields to the individuals who compiled the report.

He said collecting taxes in accordance with the country’s full revenue potential constituted genuine public service and stressed the importance of ensuring that taxes collected from consumers reached the national exchequer.

The prime minister also praised an audit report evaluating the production monitoring system in the cement sector. He directed the Ministry of Information Technology to conduct audits in other sectors to assess the system’s effectiveness and determine whether it was delivering the intended results.

The reviews are intended to help the government evaluate the monitoring mechanism and strengthen tax collection across manufacturing industries.

In a separate meeting on the Danish IT Park Islamabad, Prime Minister Shehbaz Sharif directed the Ministry of Information Technology to conduct a comprehensive case study of the project. He called for the facility to be developed into a world-class technology hub and a centre for a modern information technology ecosystem, supported by effective collaboration between academia and industry.

The prime minister also directed authorities to initiate operations in partnership with global technology companies and ordered a third-party audit of the Danish IT Park project.

Shehbaz reaffirmed the government’s commitment to creating new opportunities for IT entrepreneurs, saying that equipping young people with modern skills in information technology, artificial intelligence (AI) and financial technology (FinTech) remained a key government mission.

The meeting was briefed on plans to develop a comprehensive ecosystem aimed at increasing Pakistan’s IT exports and attracting investment into the sector.

Officials reported that eight incubation centres had been established across the country to support startups and help emerging businesses develop.

The briefing also stated that 50 private buildings had been upgraded into software technology parks, while 105 co-working spaces were operational to provide facilities for IT professionals.

The prime minister’s directions focused on strengthening the Danish IT Park while expanding opportunities for entrepreneurs, supporting startups and developing a skilled workforce capable of contributing to Pakistan’s digital economy.

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