Another IMF Condition Met as FBR Expands Retail Tax Network

Pakistan has connected 12,861 large retailers, including shopping malls, textile and leather businesses, and restaurants, to the Federal Board of Revenue’s (FBR) Point of Sale (POS) system as part of efforts to meet IMF conditions and improve tax documentation.

According to the FBR, large retailers are now required to link their businesses with the authority’s computerized system, enabling real-time monitoring of sales and tax collection. The move is part of broader reforms aimed at documenting the economy and increasing revenue.

So far, these retailers account for 35,761 branches nationwide, with plans to expand the system to around 40,000 tier-one retailers over the next two years.

Businesses with annual turnover exceeding Rs50 crore will also be integrated into a digital invoicing system by the end of the current fiscal year.

The FBR said the POS system allows direct transmission of computerized sales data, helping curb tax evasion and improve transparency. Authorities have warned that violations could result in fines ranging from Rs500,000 to Rs3 million or even closure of business operations.

The development comes as part of Pakistan’s ongoing commitments under the IMF programme, where digitization of retail and improved tax compliance have been key reform areas. The government has been pushing to bring more businesses into the formal tax net after historically low compliance levels in the retail sector.