FBR orders steelmakers to install monitoring systems by Dec 30

Pakistani tax regulator, Federal Board of Revenue (FBR) has ordered registered steel manufacturers to install and operationalize electronic production monitoring systems at all manufacturing facilities and active production lines by December 30, 2026.

The directive, issued under Sales Tax General Order No. 29 of 2026, applies to steel melters, re-rollers and composite units producing billets, ingots, bars including rebars and other steel products.

The systems will electronically record production volumes, product dimensions and weights, while integrated weighbridges will track dispatches, including vehicle registration numbers and shipment details. The FBR will use the data to reconcile production with shipments and identify discrepancies.

Manufacturers must install the systems through FBR-authorized vendors and ensure continuous operation and secure data transmission to the tax authority’s Central Control Unit. Equipment failures, damage or tampering must be reported within one hour, while changes affecting production lines or dispatch arrangements require 30 days’ advance notice.

The order prohibits the removal or supply of covered steel products unless production and dispatches have been recorded through the approved systems. Manual records, private cameras and standalone weighbridge entries will not be accepted as substitutes.

The FBR warned that non-compliance, unauthorized removal of goods, concealment of production facilities or tampering with monitoring equipment could lead to action under the relevant rules.