FBR To Monitor Leather Production In Real Time By December

The Federal Board of Revenue (FBR) is preparing to launch real-time monitoring of leather production by November 2026, with the system expected to achieve complete coverage of all eligible production lines by the end of December, Business Recorder reported.

The initiative will introduce a hybrid and technology-neutral framework designed to collect real-time or near-real-time information on production, processing, packaging and dispatch activities at notified leather facilities across Pakistan.

According to an official document, the rollout will be conducted in stages. Around 20% of eligible production lines are scheduled to come under the monitoring system by November 15, followed by 50% coverage by December 15 and full 100% coverage by December 31, 2026.

The framework will monitor various categories of leather-sector products, including raw hides and skins, wet blue, crust and finished leather. It will also cover leather sheets, rolls, bundles, footwear, garments, bags, gloves, belts, wallets and upholstery-related components.

Data collection will take place at major points throughout the manufacturing process, including receipt of raw materials, tanning, splitting, dyeing, finishing, cutting, stitching, assembly, quality grading, packing, storage and final dispatch.

The proposed system may use a range of technologies, including barcode and QR-code scanners, weighing equipment, industrial sensors, machine counters, programmable logic controller integration, RFID tags and AI-powered cameras.

The technology deployed at each facility will depend on its operational structure, whether it functions as a tannery, a finished-goods manufacturing unit or an integrated facility handling both stages.

The FBR aims to generate tamper-resistant and auditable production records through the system. These records will allow the tax authority to compare monitored production with taxpayer records, invoices and import and export declarations.

Development of the monitoring platform will be outsourced. Following a technical evaluation, the FBR has shortlisted four developers and is expected to award the contract within the coming days.