Federal Board of Revenue is preparing to expand its Track & Trace System to additional high-risk sectors, aiming to improve revenue collection, curb illicit trade, and increase transparency across industrial supply chains. The system, which has already been deployed in select industries, relies on Unique Identification Marks affixed to goods at the production stage, allowing authorities to monitor output and movement from manufacturing to retail in near real-time. These electronically generated, tamper-resistant marks enable accurate verification of tax declarations and provide enforcement agencies with a reliable mechanism to track legitimate products.
Experts note that sectors such as fuel, pharmaceuticals, beverages, and cement have traditionally faced challenges in ensuring compliance due to limitations of conventional monitoring methods. Video surveillance, for instance, cannot detect adulteration, verify product serialisation at scale, or establish the legal origin of goods—capabilities considered essential for effective taxation and regulatory oversight. By embedding security features in UIMs, the Track & Trace System generates unit-level data that allows authorities to independently verify production and sales, reducing reliance on self-reported figures by manufacturers. Products without valid marks can be quickly identified as non-compliant, enabling targeted enforcement actions and reducing widespread, routine inspections.
Assessments of sectors where the system is operational show tangible results. Authorities have detected undeclared production capacity, seized unstamped goods, and recovered smuggled or non-duty-paid stocks, demonstrating the practical impact of UIM-based monitoring. The data-driven approach has shifted enforcement strategies toward intelligence-led actions rather than indiscriminate raids, making compliance oversight more efficient and precise. This transition is expected to increase tax collection while ensuring that legitimate businesses operate on a level playing field.
Beyond regulatory benefits, the Track & Trace System offers advantages for consumers by helping verify the authenticity of products. By distinguishing genuine, tax-paid items from counterfeit or illicit goods, the system supports public health objectives, safeguards brand integrity, and enhances consumer confidence in the marketplace. Experts emphasize that as the system expands, it will not only strengthen revenue protection but also contribute to broader economic governance by fostering accountability, transparency, and operational efficiency across supply chains.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
