UK-backed AI system strengthens FBR tax monitoring across cement sector

An artificial intelligence-powered system "Digital Eye" is now monitoring production at all 27 cement factories in Pakistan, helping the Federal Board of Revenue (FBR) strengthen tax compliance and improve visibility of output, according to officials statement The system, first piloted in 2023, uses advanced video analytics to monitor production lines in real time, providing factories and the FBR with an independent record of production. Working alongside FBR's existing Track and Trace System, the "Digital Eye" system gives tax authorities greater visibility of output while reducing reliance on manual inspection and paperwork, the statement said. While track and trace records products leaving the production line, "Digital Eye" independently monitors production through AI-powered video analytics, allowing the two systems to be cross-checked and increasing confidence in reported output, the release stated. British High Commissioner Jane Marriott visited Fecto Cement alongside senior FBR officials to see the technology in operation. During her visit, the group toured the production line, observed the monitoring system, and received a briefing on how the technology was supporting tax administration reforms. Read: IT minister formally inaugurates ‘The Innovation Hive’ established by USEFP "Digital Eye is a strong example of the UK and Pakistan working together to deliver practical change," Marriott said. "Built in Pakistan and now operated nationwide by the FBR, it shows how innovation can be scaled to strengthen tax compliance, support fair competition and improve transparency," she added. The high commissioner noted, according to the official statement, that the UK was proud to have supported the journey through technical expertise, while helping build the institutional capability needed to sustain it. Separately, the FBR's Chief of Reforms and Modernisation, Dr Najeeb Ullah, said real-time production monitoring had already strengthened compliance in the cement and sugar sectors without adding to the burden on compliant taxpayers. "The results speak for themselves," he said, adding that the FBR's focus was now on consolidating what had been built, improving accuracy, deepening the skills of its teams, and extending the system to more sectors. "Accurate production data protects the businesses that declare honestly, and we are grateful to the UK for its technical support through REMIT, and we intend to take this approach into further sectors," he added. Read More: US Embassy completes STEAM programme for 100+ Pakistani innovators According to the official statement, the solution was developed by a Pakistani technology company and was tested, refined and rolled out nationwide with UK technical support. The release stated that the project demonstrated how Pakistani innovation could be scaled through international partnership to deliver reforms at the national level. The technology and the wider reform behind it were also attracting interest from countries across Africa, which were looking to Pakistan's experience for lessons on modernising tax compliance, the statement said. It added that UK support had also helped the FBR "build the capability to operate, maintain and further develop the system independently." As per the release, the government also reported that wider reforms had helped recover Rs32 billion from the cement sector and increased recorded sugar production by 31% during the most recent crushing season. The release noted that these results "reflect a range of policy and compliance measures, of which 'Digital Eye' forms one part."