ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday signed the contract for the Strategic Feasibility Assessment and Solution Design of the National Cargo Tracking System (CTS) and e-Bilty mechanism. This initiative will assist the tax machinery in reducing the tax gap of Rs 7.1 trillion, aiming to curb smuggling and tax evasion.
The project, financed by the World Bank under the Pakistan Raises Revenue Programme (PRRP), is being led by the National Targeting Centre (NTC). It aims to replace the traditional, manual, and paper-based goods transport document, locally known as the “Bilty”, with a centralized, technology-driven electronic transport waybill (e-Bilty).
Dr Najeeb, FBR Project Director and Chief of Reforms & Modernisation, stated that currently, reliance on manual checks by multiple agencies and paper documentation causes significant bottlenecks, prolongs transit times for legitimate traders, and creates opportunities for tax evasion and smuggling. “This initiative is a cornerstone of our broader vision for a digital and transparent economy,” stated the Chairman of FBR during the signing ceremony. “By integrating the CTS with existing systems like WeBOC, STRIVE (Sales Tax Real-time Invoice Verification), and the Anti-Smuggling Portal, we are closing the loopholes that allow for fake sales tax invoices and mis-declaration of goods. This ensures a level playing field for honest businesses and secures the nation’s revenue.”
The FBR has implemented three major interventions under its transformation plan to combat smuggling and sales tax evasion: (i) production monitoring at manufacturing premises, (ii) digital invoicing, and (iii) a cargo tracking system for imported and local vehicles to identify smuggled goods, the FBR Chairman added. It will be designed to securely integrate with internal FBR systems and external databases, such as NADRA and Motor Registration Authorities, the FBR Chairman further noted.
Member Customs Operations, Syed Shakeel Shah, added, “The goal is to facilitate trade by minimising en-route physical inspections and delays. The CTS will empower our officers with risk-based data, transforming our operational enforcement from manual roadblocks to intelligent, digital monitoring.”
He further stated that the system will allow customs enforcement teams to immediately identify smuggled goods or cargo moving without the payment of sales tax. “It protects our economy from the dual threats of smuggling and tax evasion, and crucially, it relieves the administrative burden on our officers and the logistics sector. We are moving from physical roadblocks to digital checkpoints.”
Terming it a critical project, Shakeel Shah emphasised that complaints regarding irregularities in the manual system would be addressed through the new system. The FBR has already installed trackers on 16,000 petroleum vehicles, with the help of FBR’s integrated system, to monitor the movement of POL products. This is expected to be completed by March 2026, he added.
