Pakistan has connected 12,861 large retailers, including shopping centres, textile and leather businesses, and restaurants, to its Point of Sale (POS) system as part of efforts to meet conditions set by the International Monetary Fund (IMF).
According to the Federal Board of Revenue (FBR), it is now mandatory for major retailers operating in the country to link their businesses with the authority’s computerised system. Officials said the move is part of a wider push to document different sectors of the economy under agreements with the IMF.
The FBR has also accelerated the registration process for Tier-1 retailers, as well as businesses in the textile and leather sectors and the restaurant industry.
So far, 12,861 large businesses or Tier-1 retailers have been integrated into the POS system. These retailers operate a combined 35,761 branches across the country. Authorities plan to expand the system further, targeting the registration of 40,000 Tier-1 retailers over the next two years.
Push for digital invoicing
Retailers with an annual turnover exceeding Rs500 million are expected to be linked to a digital invoicing system by the end of the current fiscal year. The FBR said the aim of the POS system is to curb tax evasion and increase revenue collection.
The system will allow real-time monitoring of sales tax and improve electronic invoicing. Through the POS network, sales data will be transmitted directly to the FBR, helping authorities track transactions more effectively.
Official figures show that 11,301 Tier-1 retailers with 23,676 branches have already been registered. In addition, around 1,000 large restaurants, with 1,490 branches, have been connected to the system. Another 560 Tier-1 retailers from the textile and leather sectors have also been registered so far.
Authorities warned that strict action will be taken against non-compliant businesses. Penalties range from fines of Rs500,000 to Rs3 million, along with the possibility of temporary closure of operations.
The development marks another step in Pakistan’s ongoing effort to expand its tax base and bring more economic activity into the formal system.
