Pakistan’s Federal Board of Revenue has broadened its electronic production monitoring system to cover a wider range of textile fibres, requiring registered spinning mills to install surveillance cameras and integrate real-time production data with the tax authority’s monitoring network.
The Federal Board of Revenue (FBR) has introduced new monitoring requirements for registered textile spinning mills across Pakistan, directing them to install video surveillance cameras on machinery handling various types of fibers by November 15, 2026.
The move aims to strengthen oversight of textile production activities, improve transparency and enable the tax authority to monitor fibre consumption and manufacturing processes more effectively.
The latest directive was issued through Sales Tax General Order No. 30 of 2026 on October 23, 2026. It extends the existing electronic surveillance framework beyond cotton bales to include loose, opened and blended fibers used in textile manufacturing.
New Rules Cover Multiple Fiber Types
Under the revised instructions, the monitoring requirements apply to natural, synthetic and blended fibers, including cotton, polyester, viscose, wool, acrylic and recycled materials.
Previously, the FBR’s electronic production monitoring system focused on cotton bales under an earlier order introduced in 2025. The latest development expands the scope of surveillance to cover additional stages of fiber handling and preparation before spinning.
The new requirements are intended to help the FBR obtain a clearer picture of the materials entering production and improve its ability to verify reported manufacturing activity.
Surveillance Cameras Required at Key Production Stages
Registered textile spinning units must install cameras at designated locations throughout their fiber preparation and blending operations.
These locations include hopper bale openers, feeding equipment and machinery where loose or opened fibers are introduced into the production process. Cameras will also be required at weighing and blending feeders used for processing natural and man-made fibers.
Additional surveillance will cover blow room lines handling polyester, viscose and acrylic, along with waste-opening and recycling sections where leftover materials are returned to production.
Mixing and laydown areas, where fibers are arranged, combined or prepared for subsequent processing, will also fall within the monitoring framework.
By covering these production points, the FBR intends to improve visibility into the movement and processing of raw materials within textile spinning facilities.
Real-Time Data Transmission to the FBR
The new system will involve more than simply installing cameras. The equipment must work with compatible video analytics software capable of identifying and measuring fibers as they enter the manufacturing process.
Under the directive, vendors previously authorised by the FBR to supply electronic production monitoring systems must upgrade their solutions to accommodate the expanded requirements.
The software must be capable of detecting, counting and quantifying loose, opened and other non-bale fibre materials. This will allow production information to be collected digitally and transmitted to the FBR’s Central Control Unit for storage and future reference.
The system must also monitor production activity in real time, identify unexpected interruptions and generate quantitative production analyses.
These capabilities are expected to help the tax authority examine production patterns, identify potential irregularities and use relevant analytical information when considering enforcement action under applicable laws.
Compliance Deadline Set for November 15, 2026
The FBR has instructed registered spinning mills to complete the necessary arrangements for the installation of surveillance equipment by November 15, 2026.
This includes the required cameras, hardware, software and related electronic monitoring infrastructure. The directive took effect immediately upon issuance, making timely preparation important for affected businesses.
Spinning mills may need to assess their existing production lines, identify the locations requiring additional surveillance and coordinate with authorised technology vendors to ensure that their systems meet the updated specifications.
Businesses should also confirm that their monitoring arrangements can communicate with the FBR’s central system and provide the required production information without interruption.
Additional Responsibilities for Monitoring System Vendors
The updated rules also place greater responsibility on technology providers already approved by the FBR.
These vendors must ensure that their video analytics solutions are compatible with the newly installed cameras and can process data from fiber handling operations that were not fully covered under the earlier framework.
The technology must support automated object detection, counting, production measurement and the transmission of information to the designated control unit.
Reliable integration will be essential because the effectiveness of the monitoring system depends on both the quality of video capture and the accuracy of the data generated by the analytics software.
Legal Basis of the New Directive
The FBR issued the order under Section 40C(2) of the Sales Tax Act, 1990, along with relevant provisions of the Sales Tax Rules, 2006.
The new order supplements Sales Tax General Order No. 08 of 2025 rather than replacing it. Consequently, the earlier requirements relating to cotton bale monitoring remain applicable alongside the expanded surveillance obligations.
The notification was issued with the approval of the FBR’s Member Inland Revenue Operations and signed by Second Secretary Khalid Mehmood.
What This Means for Pakistan’s Textile Industry
The expansion of electronic production monitoring represents a further step towards the digital supervision of Pakistan’s textile manufacturing sector.
For spinning mills, the immediate priority will be to meet the installation deadline and ensure that the necessary technology is functioning properly. Businesses may also need to review internal production procedures, staff responsibilities and data management practices to accommodate the additional monitoring requirements.
For the FBR, the expanded system could provide more detailed information about raw material consumption and production activity, potentially improving the identification of discrepancies between recorded and actual operations.
However, implementation will depend on the practical integration of surveillance equipment with different types of machinery, the reliability of fiber counting technology and the ability of businesses and vendors to complete the required upgrades on time.
Conclusion
The FBR’s latest order significantly widens the scope of electronic production surveillance in Pakistan’s textile spinning industry by bringing loose, opened, blended and recycled fibers within the monitoring framework.
With the November 15, 2026 deadline approaching, registered spinning mills and authorised technology vendors need to prepare for the installation and integration of the required systems.
The development reflects the tax authority’s continuing efforts to strengthen production oversight through digital monitoring, automated data collection and real-time reporting while extending the existing framework to cover a broader range of textile manufacturing activities.