Pakistan FBR implements AI monitoring to enforce tax compliance

The Federal Board of Revenue (FBR) in Pakistan has implemented the ‘Digital Eye’ system, an AI-driven monitoring tool designed to strengthen tax compliance. The system uses advanced video analytics to track real-time production at all 27 cement factories in the country, providing an independent record of output to reduce reliance on manual inspections.

Supported by technical expertise from the United Kingdom, the system has already been utilized to monitor the cement and sugar sectors. The FBR has announced that integration with this monitoring system, which includes production tracking and video surveillance, will become mandatory for businesses.

Failure to comply with these digital integration mandates may result in the FBR sealing business premises. Under new protocols, establishments will remain sealed until they successfully integrate with the monitoring system and pay any prescribed fines. The FBR has indicated that these electronic regulations may be expanded to cover additional manufacturing sectors in the future.