Pakistan’s textile sector, already under intense financial strain due to rising energy tariffs, high taxation, and mounting production costs, now faces a new challenge as the Federal Board of Revenue (FBR) has decided to introduce mandatory monitoring systems inside spinning and textile mills. According to industry sources, the FBR has issued directives requiring the installation of surveillance cameras within production facilities, triggering widespread concern among mill owners who fear that the heavy costs involved could push many of them toward closure.

The directive, communicated to various units within the textile sector, instructs mill owners to install a structured camera system designed to monitor production and ensure transparency in tax documentation, especially regarding sales tax invoices. Spinning mill owners have reportedly already begun receiving sales tax invoices specifically linked to this monitoring requirement. Industry insiders describe the move as part of FBR’s broader strategy to curb tax evasion, eliminate undocumented production, and improve compliance within one of Pakistan’s largest industrial sectors.

However, the decision has quickly drawn critical reactions from the All Pakistan Textile Mills Association (APTMA), the country’s premier textile industry body. Sources within APTMA say the FBR has awarded the contract for installing these surveillance systems to two private companies. These companies are expected to charge approximately 3.5 million rupees for the installation of just two cameras—an amount that industry representatives argue is absurdly high compared to market rates.

In addition to the installation cost, the two companies will reportedly charge around 2 million rupees annually for software services required to run and maintain the system. According to APTMA sources, both the cameras and the software are easily available in the market at nearly half the price quoted in the official arrangement. This stark disparity has fueled suspicion within the industry that the move may be more commercially motivated than operationally necessary.

The textile sector, which contributes significantly to Pakistan’s exports and employment, is currently battling multiple economic pressures. High electricity tariffs, rising gas prices, inconsistent supply of raw materials, and heavy taxation have already forced many mills to scale down operations, temporarily shut manufacturing lines, or lay off workers. In this troubling context, APTMA warns that the additional financial burden posed by FBR’s camera-monitoring scheme could become the tipping point for several struggling mills.

Industry sources indicate that APTMA has formally signaled its intention to raise the matter directly with the FBR chairman. The association argues that imposing such heavy installation and annual software charges is not only unjustified but also counterproductive, as many mills simply cannot absorb additional costs without compromising their already fragile operations. If the policy is not revised, APTMA fears that mills operating on thin margins will be forced to shut down, leading to further unemployment and reduced export capacity—outcomes the government can ill afford.

Industry analysts observe that the textile sector, traditionally a backbone of Pakistan’s manufacturing economy, has been weakened by global competition and persistent domestic challenges. In this environment, the introduction of an expensive monitoring system without consulting stakeholders risks creating further division and distrust between the government and the industrial community. While transparency and tax compliance remain essential national objectives, many argue that such initiatives must be implemented with fairness, consultation, and cost-efficiency in mind.

APTMA’s stance highlights a broader question: Is the FBR’s objective of improved monitoring achievable through less costly and more efficient alternatives? Industry experts believe that modern digital tools, including market-available surveillance systems and affordable compliance software, could deliver similar oversight benefits at a fraction of the cost currently being demanded. They also stress the need for dialogue between policymakers and industrial representatives to craft solutions that balance revenue collection with economic sustainability.

As the issue continues to unfold, Pakistan’s textile manufacturers await clarity on whether the FBR will reconsider its directive or modify its requirements to address industry concerns. APTMA’s engagement with senior FBR leadership in the coming days could play a decisive role in determining whether the surveillance program moves forward as planned or undergoes significant revisions.