Pakistan has sent a clear message to Chinese companies operating in the country: either share full details of your production or stop doing business here. The warning comes from the Federal Board of Revenue (FBR), after reports that some companies were underreporting production to avoid paying taxes. FBR Chairman Rashid Langrial said these practices cost the country nearly PKR 30 billion every year.
The issue came to light when representatives from four Chinese companies, including their management, appeared before Pakistan’s Senate Standing Finance Committee. They argued against installing CCTV cameras on factory floors, saying it could expose trade secrets. Langrial responded that the cameras are only meant to monitor production amounts, not sensitive business information. To address concerns, the government reduced the number of cameras from 16 to five per factory.
AI cameras to ensure accurate production and revenue
The FBR has decided to install AI-enabled cameras in all ceramic factories, both local and foreign, to accurately track production. State Minister for Finance Bilal Azhar Kayani said this system will benefit factory owners too, as production can now be counted precisely without FBR officials physically present.
The cameras are part of a larger plan to control tax evasion in 18 high-risk sectors, including tiles, sugar and cement. Langrial warned that companies refusing to cooperate must shut down. He added that the system is fair and aims to stop underreporting, not target foreign investors.
The move is expected to increase government revenue significantly, with additional earnings of PKR 76 billion from tiles and PKR 102 billion from cement alone this year. Pakistan is showing a tougher stance on corporate compliance, sending a strong signal to all companies about paying their fair share of taxes.
