Pakistan has connected 12,861 large retailers to the Federal Board of Revenue’s (FBR) Point of Sale (POS) system as part of efforts to improve tax documentation and meet IMF-related reform targets.
According to the FBR, the system now includes shopping malls, textile and leather businesses, and restaurants. These retailers are required to link their operations with the FBR’s digital system, allowing real-time monitoring of sales and tax collection.
So far, the connected retailers represent 35,761 outlets across the country. The government plans to expand the system further to cover around 40,000 tier-one retailers over the next two years.
In addition, businesses with an annual turnover above Rs. 50 crore will be brought into a digital invoicing system by the end of the current fiscal year.
The FBR said the POS system enables direct sharing of computerized sales data, which helps reduce tax evasion and improve transparency in the retail sector.
Authorities have warned that non-compliance could lead to penalties ranging from Rs. 500,000 to Rs. 3 million, and in some cases, businesses may also face closure.
The move is part of Pakistan’s commitments under its IMF programme, where improving tax compliance and documenting the retail sector are key reform priorities. The government is continuing efforts to bring more businesses into the formal economy, as compliance levels in the retail sector have remained low in the past.
