The Federal Board of Revenue (FBR) has issued a final warning to around 180 textile mills across Pakistan. All mills must install surveillance camera systems by July 1, 2026, or they will be declared non-operational and effectively closed for regulatory and tax purposes. Mill owners will have to bear the full cost of installation themselves.
This move is part of FBR’s broader plan to strengthen monitoring, improve transparency, and prevent tax evasion in the textile sector. Cameras will help track production processes, raw material intake, and output in real time. The initiative builds on similar digital monitoring systems already used successfully in sugar, cement, and fertilizer industries.
The textile industry, represented by the All Pakistan Textile Mills Association (APTMA), has opposed the directive. Mill owners argue that bearing the full cost, running into millions of rupees per factory, adds extra financial pressure at a time when the sector faces many challenges. Despite objections, FBR has rejected the concerns and is moving forward with enforcement.
FBR officials believe better documentation and real-time oversight will increase tax compliance and revenue collection from one of Pakistan’s most important industries. The textile sector plays a vital role in exports, employment, and economic growth. Successful implementation could set a new standard for industrial monitoring across other sectors.
