The Government of Pakistan Federal Board of Revenue (FBR) has informed the International Monetary Fund that expanded industrial production monitoring is expected to generate an additional Rs. 48 billion in tax revenue during FY2026-27.
The commitment was revealed in the IMF’s third review report under the Extended Fund Facility and second review under the Resilience and Sustainability Facility.
According to the report, the FBR is expanding production monitoring systems in sectors with significant tax gaps, particularly the textile industry. Authorities have already completed full deployment of monitoring systems in the sugar, cement, tobacco, and fertilizer sectors, where the estimated tax gap is around Rs. 160 billion.
The textile and beverage industries are currently undergoing pilot implementation and are expected to become fully monitored by the end of October 2026.
The IMF stated that the FBR has assigned 200 personnel to support the operation of these production monitoring systems. The initiative is aimed at improving sales tax reporting by more accurately tracking production volumes across industrial units.
According to the Fund, the monitoring framework is expected to increase declared sales tax revenues and contribute an estimated Rs. 48 billion in additional tax collection during FY2027.
The IMF further noted that the effectiveness of the system will be measured through performance indicators, including growth in sales tax revenues from monitored industries after adjusting for nominal GDP growth, along with the quantity of goods identified through monitored production facilities.
