A UK-backed artificial intelligence system is now monitoring production at all 27 cement factories in Pakistan, helping the Federal Board of Revenue (FBR) strengthen tax compliance and improve revenue collection.
The Digital Eye system uses AI-powered video analytics to monitor production lines in real time. It provides the FBR and cement manufacturers with an independent record of production, reducing reliance on manual inspections and paperwork.
The system was first piloted in 2023 and has since been rolled out nationwide. It works alongside the FBR’s existing Track and Trace System, allowing tax authorities to cross-check production data and improve visibility of industrial output.
British High Commissioner Jane Marriott visited Fecto Cement along with senior FBR officials to observe the technology in operation. During the visit, officials toured the production line and received a briefing on the system and its role in tax administration reforms.
Marriott said Digital Eye was an example of practical cooperation between the UK and Pakistan. She said the system demonstrated how innovation could be scaled to strengthen tax compliance, promote fair competition and improve transparency.
FBR Chief Reforms and Modernization Dr. Najeeb Ullah said real-time production monitoring had strengthened compliance in the cement and sugar sectors without increasing the burden on compliant taxpayers.
He said the FBR was focused on improving the system’s accuracy, strengthening the skills of its teams and expanding the technology to additional sectors.
Developed by a Pakistani technology company, Digital Eye was tested and refined before being deployed nationwide with UK technical support.
The system independently monitors production through AI-based video analytics, while the Track and Trace System records products leaving production lines. Officials said cross-checking the two systems increases confidence in reported production figures.
UK technical support has also helped the FBR develop the capacity to operate, maintain and further improve the system independently.
The technology has now been extended to the sugar sector, with plans to introduce the approach in other industries. The project has also attracted interest from countries in Africa seeking to modernize tax compliance systems.
According to the Government of Pakistan, broader reforms helped recover Rs32 billion from the cement sector and increased recorded sugar production by 31% during the most recent crushing season. The government said Digital Eye is one component of a wider set of policy and tax compliance measures.
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