ISLAMABAD — The Federal Board of Revenue (FBR) is preparing to launch a nationwide cargo tracking system in the next fiscal year as part of efforts to reduce sales tax evasion, improve customs enforcement, and curb smuggling across Pakistan.
According to officials familiar with the proposal, the planned system would require goods to be transported through FBR-registered commercial vehicles equipped with digital tracking technology. Authorities believe the initiative could strengthen oversight of cargo movement, improve tax compliance, and reduce revenue losses linked to undocumented trade activities.
Under the proposed framework, commercial transport vehicles operating on motorways, the Grand Trunk (GT) Road, and other major highways would be required to register with the FBR. Sources said unregistered commercial vehicles could face restrictions on transporting goods under the new system.
Real-time monitoring of cargo movement
The initiative would involve the installation of specialized cargo tracking tags on commercial vehicles. These devices would allow authorities to monitor the movement of goods in real time and maintain digital records of cargo transportation across the country.
Officials say the tracking system is designed to enhance transparency in commercial transport operations and improve the monitoring of goods moving between manufacturers, distributors, and markets.
Factories and industrial units would also be required to load goods onto vehicles registered with the FBR, according to the proposal. Authorities are considering enforcement measures and penalties for operators who fail to comply with registration requirements.
FBR aims to improve tax collection
The cargo tracking project is part of broader efforts to strengthen tax administration and address revenue leakages. By linking commercial vehicles to the FBR’s central data network, authorities expect to improve documentation of commercial activity and reduce opportunities for tax evasion.
Officials estimate that the proposed measures could help prevent losses associated with undocumented trade and contribute to improved customs and sales tax collection.
The FBR is expected to implement the project in phases during the next fiscal year. Regulatory and enforcement mechanisms are also being developed to support the rollout of the system and ensure compliance among transport operators and businesses.
If approved and implemented, the initiative would represent one of the most extensive digital monitoring measures introduced in Pakistan’s commercial transport sector in recent years.
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