FBR signs cargo tracking, e-Bilty design contract

Pakistan’s tax authority launches feasibility and design phase for a digital cargo tracking system aimed at curbing smuggling and sales tax evasion.

The Federal Board of Revenue has signed a contract for the strategic feasibility assessment and solution design of the National Cargo Tracking System and the e-Bilty mechanism. The agreement marks a key step in the FBR’s broader digitalization and modernization agenda.

The signing ceremony between the FBR and a Korean vendor company was held at the FBR House on Thursday. Officials described the project as an important initiative aimed at strengthening revenue monitoring through digital interventions.

Read More: FBR Hikes Islamabad Property Valuations

Senior FBR officials said the planned system could help reduce Pakistan’s estimated tax gap of Rs7.1 trillion. Authorities expect the digital platform to support enforcement efforts against smuggling and sales tax evasion.

The project is financed by the World Bank under the Pakistan Raises Revenue Program. Implementation is being spearheaded by the National Targeting Center.

Officials said the initiative aims to replace the traditional goods transport document known as the Bilty. The existing system relies on manual documentation and paper-based transport records. Authorities believe this process creates inefficiencies and increases the risk of manipulation.

Under the new system, the manual Bilty will be replaced with a centralized electronic transport waybill known as the e-Bilty. The technology-driven document will form part of a broader digital cargo monitoring platform.

Dr. Najeeb, FBR Project Director and Chief Reforms and Modernisation, said the current system relies heavily on manual checks conducted by multiple agencies. These procedures, combined with paper documentation, often create operational bottlenecks.

He said such practices extend transit times for legitimate traders moving goods across the country. At the same time, manual systems create opportunities for tax evasion and smuggling activities.

According to Dr. Najeeb, the planned Cargo Tracking System will enable real-time tracking of commercial cargo. Authorities will be able to monitor shipments from the point of origin until final destination.

The system will generate an electronic transport document carrying a unique QR code. Customs enforcement teams will be able to verify this code instantly during inspections. Officials say the technology will allow authorities to quickly separate compliant cargo from suspicious shipments.

FBR Chairman Rashid Mahmood Langrial described the project as a cornerstone of the government’s push for a digital and transparent economy. He said the new system will integrate with several existing digital platforms already used by the tax authority.

These systems include WeBOC, the customs clearance platform used for trade processing. Integration will also include STRIVE, the Sales Tax Real-time Invoice Verification system.

The Anti-Smuggling Portal will also connect with the cargo tracking infrastructure. According to the chairman, linking these systems will help close loopholes that allow fake sales tax invoices and misdeclaration of goods.

Langrial said stronger integration will support fair competition in the marketplace. Honest businesses will benefit from improved transparency in the supply chain. At the same time, the government expects better protection of national revenue.

He said the FBR has introduced three major interventions under its broader transformation plan. The first focuses on production monitoring at manufacturing premises. The second introduces digital invoicing to track sales transactions.

The third initiative involves the cargo tracking system designed to monitor imported and locally transported goods. Authorities believe the integrated approach will help identify smuggled goods more efficiently.

The chairman also noted that the new platform will integrate with several external databases. These include internal FBR systems as well as national identity and vehicle registration databases.

Integration with NADRA and Motor Registration Authorities will help strengthen verification mechanisms. Officials say the connectivity will improve cargo tracking accuracy and enforcement efficiency.

Member Customs Operations Syed Shakeel Shah said the main objective of the project is to facilitate legitimate trade. Authorities want to reduce unnecessary inspections during cargo movement.

Shah said the system will provide customs officers with risk-based operational data. This will shift enforcement from manual roadblocks to digital monitoring tools.

He said the platform will help officers identify smuggled goods immediately. It will also detect cargo moving without payment of sales tax.

According to Shah, the system protects the national economy from the dual threats of smuggling and tax evasion. It will also reduce administrative pressure on enforcement officials and the logistics sector.

He added that the approach represents a shift toward digital checkpoints rather than physical roadblocks. Authorities believe the change will streamline cargo movement while strengthening compliance monitoring.

Shah described the project as critical for addressing complaints linked to the manual documentation system. The electronic platform is expected to reduce irregularities associated with traditional paperwork.

He also highlighted progress in related digital monitoring initiatives. The FBR has already installed tracking devices on petroleum transport vehicles.

By March 2026, trackers had been installed on around 16,000 petroleum vehicles. The system monitors the movement of petroleum, oil and lubricant products through an integrated FBR platform.

Officials say the experience gained from petroleum monitoring will support broader cargo tracking efforts. It provides a foundation for implementing digital monitoring across the transport sector.

Following the signing ceremony, the contract begins the assessment and technical design phase. The consulting firm will conduct a comprehensive evaluation of the project requirements.

The firm will analyze international best practices for cargo tracking systems. Experts will also assess high-level ICT infrastructure requirements for nationwide implementation.

The review will examine Pakistan’s legal and policy framework governing cargo transport. Based on this assessment, the firm will prepare a detailed system architecture and implementation roadmap.

Officials say the final blueprint will guide the nationwide rollout of the Cargo Tracking System. The project aims to modernize logistics monitoring and align Pakistan’s transit trade regulations with global standards.