PM orders FBR to expand automated production monitoring in industries by year-end

ISLAMABAD  –  Prime Minister Shehbaz Sharif Monday directed the completion of a production monitoring system for sales tax purposes across all manufacturing sectors by the end of this year.

Chairing a review meeting on FBR reforms in Islamabad, the prime minister observed that production monitoring through cameras under the faceless taxation system was being made more effective and directed the removal of obstacles in the installation of automated monitoring systems.

He warned that those businesses which had been collecting taxes from consumers but pocketing the same amount instead of depositing it with the government exchequer did not deserve any concession.

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Ministers Azam Nazeer Tarar, Dr Musadik Malik, Ahad Khan Cheema and Shaza Fatima Khawaja, Minister of State Bilal Azhar Kayani, Prime Minister’s Adviser Haroon Akhtar and senior officials concerned attended the meeting, PM Office Media Wing said in a press release.

The prime minister appreciated those in the manufacturing sector that were voluntarily installing production monitoring systems and said the government would take all necessary measures to achieve the country’s full tax potential.

He commended the Federal Board of Revenue (FBR) Transformation Team for preparing a comprehensive assessment of the country’s tax potential in the production sector.

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He also appreciated the audit report on the production monitoring system in the cement sector and directed the Ministry of Information Technology to audit the system in other sectors to assess its effectiveness.

The prime minister said collecting taxes in accordance with the country’s full revenue potential was a meaningful service to the public.

The meeting was briefed that the production monitoring system had been fully installed in the sugar, cement, tobacco, tiles and fertilizer sectors while the installation process was underway in the textile, packaged water, packaged juice and packaged milk sectors, with procurement of the required equipment had been completed.

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The meeting was further informed that procurement of equipment for the steel, poultry and tyre sectors would be completed by October 15, while procurement for the tea, household electronics, leather, paper and board, and oil and ghee sectors would be completed by October 30.

The monitoring system was expected to become fully operational across all these manufacturing sectors by December 31 this year.

The prime minister was also informed about resistance from several industries to installing monitoring systems in the textile sector. However, Nishat Mills, Alkaram Textile, Alkaram Cotton Mills, J.K. Spinning Mills, Surti Enterprises, Interloop Limited, Faisal Spinning Mills, Ibrahim Fibres Limited, Sapphire Textiles Limited and Nishat Chunian had voluntarily installed the systems in compliance with government measures. The prime minister appreciated these companies for their cooperation.

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The meeting was also presented with a review report on the gap between tax collection and the country’s tax potential, including an assessment of the revenue that could be generated through improved tax compliance and enforcement.

It was informed that government measures had resulted in the collection of an additional Rs1.3 trillion in taxes over the past three years, representing a 40% increase in tax collection. The meeting was told that the additional revenue had been generated through enforcement measures.

The prime minister commended the FBR Transformation Team for its round-the-clock efforts in preparing a comprehensive report assessing the gap between the country’s tax potential and actual collection. He particularly appreciated the officials who prepared the report and presented them with shields at the conclusion of the meeting.

Also, PM Shehbaz Sharif has said that small and medium enterprises (SMEs) in Pakistan have immense potential to boost the national economy. Chairing a meeting regarding the Small and Medium Enterprises Development Authority (SMEDA) in Islamabad today, he said the business community is the backbone of any country’s economy. The prime minister directed SMEDA to increase the total volume of loans for SMEs from 1.1 trillion rupees to 2.2 trillion rupees by 2028. He said the ongoing reforms within SMEDA are centred on empowering small and medium-sized business owners.

The prime minister said empowering people in underdeveloped areas will reduce migration from these regions to major cities and foster the country’s overall development.

He added that providing people in underdeveloped areas with opportunities to establish businesses in various sectors will prove beneficial for the progress and prosperity of those regions. The briefing highlighted that an Artificial Intelligence (AI)-based helpline is being set up to provide information and guidance in local languages.

Meanwhile, PM Shehbaz Sharif directed relevant authorities to transform Daanish IT Park in Islamabad into a world-class technology hub. He issued these directives while chairing a review meeting regarding the IT Park in Islamabad today.

The PM said Daanish IT Park should be developed into a center of a modern IT ecosystem through effective collaboration between academia and industry.

He reaffirmed the resolve to continue the journey of equipping Pakistani youth with modern skills in the fields of Information Technology, Artificial Intelligence, and FinTech, while creating fresh avenues for tech entrepreneurs.

The PM directed to start operations at Daanish IT Park in collaboration with the international technology companies. Shehbaz Sharif instructed the Ministry of Information Technology to conduct a comprehensive case study of Daanish IT Park, Islamabad and a third-party audit of the project. During the meeting, a detailed briefing was given on the creation of a comprehensive ecosystem aimed at boosting IT exports and increasing foreign investment in this sector.

The meeting was informed that fifty private buildings have been upgraded to Software Technology Parks under the Pakistan Software Export Board, while eight Incubation Centers have been established across the country to support startups.

It was also informed that 105 co-working spaces are currently operational to facilitate IT professionals.

The meeting was informed that active engagements are underway with leading global tech companies for operations in the Daanish IT Park.

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