A. Background (BG)

1. This refers to the related Important FRQCs in trail, blue, italic and double line (a) 3351 of 17.11.25 about Electronic FST Monitoring Textile Spinning Mills (b) 2984 of 26.12.24 about Factory Shut down over track-and-trace system malfunction & KCR

2. We also refer to several Other TLQCs including (a) 2854 of 30.7.24 about Track & Trace system for Cotton & Ginning industry (b) 2298 of 10.4.23 about Cement, Beverages & Food Factories' Monitoring & Others be ready (c) 2194 of 6.2.23 about IR Officers to Monitor Sugar Mills, Etc for FST (d) 1718 of 17.11.21 about FBR bans Sugar movement without Stamps /UIM

B. Updated Commentary

1. Further to matters in BG above & KQU 3668 of 25.11.25 (uploaded on FBR web on 20.11.25), being an important matter, we would inform you about Sales Tax General Order (STGO) # 08 of of 20.11.25 IR Operations Electronic Monitoring of Production by Counting Cotton Bales through video analytics of 20.11.25 (Attachment 3374.1) in the ensuing paragraph, with emphasis in bold & Underline, ours for quick reading.

2. In exercise of the powers conferred u/s 40C (2) of STA, 1990 and Rules I5OZQR and 150ZQT of the Chapter XIV-BA of the STR ,2006, FBR directed that all the registered persons engaged in textile spinning shall install video analytics solution as specified under the rules with immediate effect.

3. It is hereby notified that the processing of cotton bales at all the textile spinning units shall be monitored through video surveillance and video analytics solution, by installation of production monitoring equipment at production lines / blendomats / auto-plucker machines, as provided by the vendors approved by the Board.

4. All the registered persons engaged in textile spinning are hereby directed under law to make necessary arrangements for installation of video analytics solution (including hardware and software) for successful implementation of electronic monitoring of production by 3l.12.25.

5. In order to ensure timely installation of the video analytics solution, the concerned Chief Commissioners shall also notify dedicated focal persons who will work in liaison with the registered persons engaged in textile spinning and authorized vendors for video analytics solution. All field formations are hereby directed to prioritize the implementation process by focusing on high-risk registered persons involved in textile spinning who are using undocumented cotton bales (commonly known as “Gol Mall”). A non-exhaustive jurisdiction-wise list of registered persons engaged in textile spinning is also enclosed to the STGO.

5. Details of the vendors authorized under Chapter XIV-BA of STR 2006, for electronic monitoring of production of persons engaged in textile spinning through video analytics are as notified as follows:

6. All vendors authorized under Chapter XIV-BA of STR 2006, for electronic monitoring of production of persons engaged in textile spinning through video analytics are hereby directed to ensure their video analytics solutions are compliant to the following criteria prescribed under rule 150ZQT of STR 2006.

(a) real time capture of production process;

(b) real time collection of data that shows production through object detection and object counting;

(c) transmission of data to Central Control Unit at Board on real time basis, storage and archiving of data;

(d) detection of unexpected stops;

(e) quantitative analyses of productions; and

(f) data analysis for required legal actions.

7. This issues with the approval of the competent authority, Member IR- Operations, FBR, Islamabad and shall be applicable with immediate effects.

8. Consist of 8 pages with an Interesting Jurisdiction-wise list of registered spinning units on page 3 & 9. If you have limited time, we have prepared the contents below and shared it in our commentary. You can review it.

C. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal   & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.

Best regards for Here & Hereafter

Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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