The Federal Board of Revenue, FBR has increased its crackdown on textile spinning units failing to install Digital Eye monitoring technology. A report from February 20, 2026, states that the FBR will pursue firm legal or administrative action against these specific units.
Regulatory Background and Compliance Deadlines
FBR introduced the Digital Eye system to improve transparency in the cotton supply chain. The system uses video analytics to monitor production and track cotton bales, especially undocumented stock known in the market as Gol Maal.
The textile industry in Pakistan consumes around 13 million cotton bales every year. It is estimated that around 4 to 5 million bales are not under the tax system.
The tax authority had originally set 1 November 2025 as the deadline for installation. It later extended the deadline to 31 December 2025 to give the industry more time. Despite the extension, many spinning units did not comply.
Enforcement Measures and Industry Response
FBR has now warned that it will suspend Sales Tax Registration, close down the business, impose a financial penalty, withhold import consignments, and blacklist defaulters. The All Pakistan Textile Mills Association, APTMA, moved the Lahore High Court to contest the notification, but the court did not issue a stay order. FBR says that it will introduce the scheme to enhance documentation and safeguard national revenue.
