ISLAMABAD — Pakistan’s Federal Board of Revenue (FBR) has issued a stern warning to Chinese companies operating in the country: either fully disclose production or shut down operations. The warning came after representatives from four companies told a parliamentary panel that their management refused to allow AI monitoring cameras in their factories.
FBR Chairman Rashid Langrial said the government has decided to install AI-enabled cameras at all ceramic factories—both local and foreign-owned—to prevent an estimated Rs30 billion in annual tax evasion through underreporting of production.
During the Senate Standing Committee on Finance, chaired by PPP Senator Saleem Mandviwalla, the Chinese representatives argued that monitoring production lines could expose trade secrets. Langrial rejected the claim, emphasizing that the cameras would only capture production counts and the number of devices per factory had already been reduced from 16 to five.
State Minister for Finance Bilal Azhar Kayani added that the system would benefit factory owners since no FBR officials would need to be physically present. AI-powered video analytics would ensure accurate counting while maintaining operational confidentiality.
Langrial also pointed out that the decision followed complaints from the Pakistan Tiles Manufacturers Association about competitors underreporting production and evading taxes. He referenced similar AI monitoring implemented in the sugar and cement sectors, which helped generate billions in additional revenue.
The committee also raised concerns over certain commercial banks imposing strict dress codes on female employees, including mandatory abayas. Senators Dr. Zarqa Taimur and Farooq Naek condemned these policies, stating they undermine basic freedom and equality. Banks were asked to explain their practices.
This move highlights Pakistan’s dual approach: tightening tax compliance through cutting-edge technology while keeping an eye on social and workplace fairness.
