Slug: fbr-steel-industry-digital-monitoring-december-30-deadline
Category: Business News
Focus keyphrase: FBR steel industry monitoring
SEO title: FBR Steel Industry Monitoring Deadline: Dec 30, 2026
Meta description: FBR has ordered steel melters and re-rollers to install digital production monitoring by December 30, 2026, under Sales Tax General Order No. 29.
Tags: FBR, steel industry, sales tax, digital monitoring, tax compliance, Inland Revenue
Original element: our own data point — FP’s FBR enforcement coverage (Rs649bn tax shortfall, AI cross-checking of returns, the super tax recovery drive, the PM’s warning to tax officers) shows the pressure this steel-specific order sits inside, with internal links.
FBR Gives Steel Industry Until Dec 30 to Install Digital Production Monitoring
ISLAMABAD: The Federal Board of Revenue has given steel manufacturers until December 30, 2026, to install and activate digital monitoring systems that track production and dispatches at every factory and active production line.
The deadline comes in Sales Tax General Order No. 29 of 2026, issued on Wednesday, ProPakistani reported. The order covers registered steel melters, re-rollers and composite manufacturing units across Pakistan, and it has taken immediate effect.
The system will let FBR monitor steel production, record dispatches and spot gaps between estimated production and the actual weight of goods leaving factories.
How the four-stage system works
The order sets out a four-stage monitoring framework. It starts with the identification and counting of billets and ingots, moves to verification of product dimensions and sizes, then counts and classifies finished steel products, and ends with dispatch weight reconciliation through integrated weighbridges.
The system will record production dates and times, product dimensions, estimated weights, vehicle registration numbers, and the gross, tare and net weights of dispatched goods. All data will flow electronically to FBR’s Central Control Unit for monitoring and reconciliation, with automated alerts for discrepancies, stoppages and tampering.
Cameras, sensors and approved vendors
Steel manufacturers must install industrial cameras, sensors, video analytics equipment, integrated weighbridges and related hardware and software. The system must support automated counting, alerts and controls that detect tampering.
FBR has named ISSM Labelling Solutions and Obsidian as authorised vendors for the iron and steel sector. Manufacturers must arrange installation and maintenance through vendors approved under the relevant sales tax rules.
The order is explicit about what does not count: manual records, privately installed cameras and standalone weighbridge entries will not be accepted as substitutes for the approved system.
Reporting duties and penalties
Manufacturers must report system failures, equipment damage, tampering or an inactive production line to FBR, its Central Control Unit and the relevant Commissioner Inland Revenue within one hour.
They must also give 30 days’ advance notice of any changes to products, production lines, weighbridges or dispatch processes that could affect the monitoring system.
FBR’s field formations will identify operating steel units, coordinate site surveys, supervise installation and testing, and investigate unexplained gaps in production and dispatch data. The monitoring data can be cross-checked against tax returns, invoices, stock records, electricity consumption and weighbridge records.
Failure to install or operate the system, bypassing monitoring controls, concealing production lines or dispatch points, or removing goods without the required monitoring can invite action under the Sales Tax Act, 1990, and the relevant rules.
Part of a wider enforcement push
The steel order is the latest move in FBR’s expanding enforcement drive, which Feature Pakistan has tracked through the year. The board faces a tax shortfall of Rs649 billion, has begun using artificial intelligence to cross-check tax returns against bank and property data, and launched a super tax recovery drive after a court ruling.
Prime Minister Shehbaz Sharif has warned tax officers that resistance to FBR reforms will not be tolerated. The revenue authority has also moved against content creators and influencers over undeclared digital earnings, signalling that documentation is tightening across sectors. The steel-specific general order fits that pattern: identify a sector, mandate digital visibility, and cross-check the numbers.
What happens next
Steel units now have just over two months to complete installation, testing and activation. FBR field teams will begin identifying operating units and coordinating site surveys, with the Central Control Unit watching the data flow once systems go live.
Frequently asked questions
What is the deadline for steel units to install the monitoring system?
December 30, 2026, under Sales Tax General Order No. 29 of 2026, which has taken immediate effect.
Which units does the order cover?
Registered steel melters, re-rollers and composite manufacturing units across Pakistan, at every factory and active production line.
Who are the authorised vendors?
FBR has named ISSM Labelling Solutions and Obsidian as authorised vendors for the iron and steel sector.
What happens if a manufacturer fails to comply?
Non-compliance — including bypassing controls, concealing production lines or removing goods without monitoring — can invite action under the Sales Tax Act, 1990.
