Innovative Monitoring System Transforms Production Oversight
Launched in 2023, an innovative system utilising advanced video analytics has been implemented to monitor production lines in real time, providing both factories and the Federal Board of Revenue (FBR) with an independent record of output. This system works in conjunction with the FBR’s existing Track and Trace System, enhancing tax authorities’ visibility into production while minimising the reliance on manual inspections and paperwork.
British High Commission’s Engagement with Local Industry
British High Commissioner Jane Marriott, alongside senior officials from the FBR, visited Fecto Cement to witness the technology in action. During the visit, they toured the production line, observed the monitoring system, and received detailed briefings on how this technology is facilitating tax administration reforms.
Commenting on the initiative, Jane Marriott CMG OBE remarked, “Digital Eye exemplifies the collaboration between the UK and Pakistan in delivering tangible changes. Developed in Pakistan and now operational nationwide by the FBR, it showcases how innovation can be scaled to enhance tax compliance, promote fair competition, and increase transparency. The UK is proud to have contributed technical expertise to support this journey, while also helping to build the necessary institutional capacity for its sustainability.”
Enhancing Compliance through Real-Time Monitoring
Dr. Najeeb Ullah, Chief of Reforms and Modernisation at the FBR, stated, “The results are evident. Real-time production monitoring has already bolstered compliance in both the cement and sugar sectors, without creating additional burdens for compliant taxpayers. Our current objective is to solidify our achievements, enhance accuracy, strengthen our teams’ skills, and extend this system to other sectors. Accurate production data safeguards businesses that declare their output honestly, and we are thankful for the UK’s technical support through the REMIT programme, as we aim to replicate this approach in further industries.”
International Collaboration Supports Local Innovation
Developed by a Pakistani technology firm, the solution has undergone testing, refinement, and nationwide rollout with the assistance of UK technical expertise. This project exemplifies how Pakistani innovation can be amplified through international partnerships to enact reforms on a national scale.
The technology, along with the broader reform initiatives, has garnered attention from several African nations, which are keen to learn from Pakistan’s experience in modernising tax compliance.
Synergising Systems for Enhanced Accuracy
The newly implemented system complements the FBR’s existing Track and Trace System. While Track and Trace records the movement of products leaving the production line, Digital Eye independently monitors production using AI-powered video analytics. This dual approach allows for cross-checking between the two systems, significantly enhancing the reliability of reported outputs.
UK support has also empowered the FBR to develop the capability to operate, maintain, and further enhance the system independently. What began as a pilot initiative has expanded into a nationwide system encompassing all 27 cement factories in Pakistan and has now been extended to the sugar sector, with plans to broaden the approach to additional industries.
Significant Financial Recovery through Reforms
The Pakistani government has reported that comprehensive reforms have led to the recovery of Rs 32 billion from the cement sector and a remarkable 31 per cent increase in recorded sugar production during the most recent crushing season. These impressive outcomes reflect a combination of policy and compliance measures, with Digital Eye being a vital component of this initiative.
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