ISLAMABAD: The Federal Board of Revenue (FBR) is not replacing the Track and Trace system (T&T) with video analytics being installed at several sectors as T&T is offering secure tracking, digital audit trails and end-to-end compliance coverage.
According to sources, the video analytics cannot be replaced with the (T&T) due to abrupt transitions from the T&T system to video analytics in high-volume sectors would result in serious complications. Therefore, Track and Trace System should be expanded to additional sectors and the video analytics can only supplement as an alternative temporary solution.
Several stakeholders argued that video analytics should be viewed as a complementary layer rather than a replacement for established systems that offer secure tracking, digital audit trails, and end-to-end compliance coverage.
FBR mulling replacing TTS with video analytics system
According to industry observers and procurement experts, Pakistan’s ongoing efforts to modernize regulatory oversight and improve transparency across high-value sectors have prompted renewed discussion around the use of digital monitoring tools.
As institutions explore ways to enhance visibility, reduce leakages, and support fair market practices, different technological approaches, including Track and Trace solutions and video analytics, have entered the policy conversation. Experts observing these developments note that the goal across all stakeholders remains consistent, i-e., strengthening governance frameworks in a manner that is effective, sustainable, and aligned with national compliance needs.
Industry specialists observing current policy conversations note that the recent debate around deploying video analytics in the sugar sector reflects a broader institutional push to modernize monitoring tools.
While video analytics can be useful for visibility of physical movement within facilities, experts stress that the technology serves a different purpose and cannot, on its own, verify tax liability, validate production volumes, or authenticate goods in a tamper-proof manner. In addition, features such as digital authentication mechanisms, tamper-resistance, and end-to-end traceability from production to market remain critical for validating production volumes, and ensuring goods are tamper-proof.
Several stakeholders argue that video analytics should be viewed as a complementary layer rather than a replacement for established systems that offer secure tracking, digital audit trails, and end-to-end compliance coverage.
Sugar industry was of the view that the Track and Trace System is already delivering strong results and contributing significantly to FBR’s revenue, making the proposed installation of AI-based cameras an additional and unnecessary step. They added that the cost of these new cameras would again fall on the mills, creating further financial burden.
They also noted that the nominated vendors lack proven technical capability and that introducing a new system without a pilot project raises concerns. While the sugar industry is not opposed to camera installation, it stressed that businesses’ legal and operational rights must be respected, especially in the current challenging business climate.
Analysts also point out that abrupt transitions between monitoring systems, particularly in high-volume sectors like sugar, can create temporary operational ambiguities, as highlighted in recent parliamentary discussions. They suggest that policy changes in such critical sectors are most effective when supported by structured evaluations, clear comparative assessments, and phased implementation frameworks to avoid unintended disruptions in supply chains or market stability.
From a governance standpoint, experts emphasize that strengthening collaboration among institutions, such as the FBR, the CCP, the PBS, and relevant industry bodies, is essential for achieving sustained transparency. Improved data-sharing protocols, consistent monitoring mechanisms, and unified oversight practices are frequently cited as practical steps that could enhance market discipline, prevent distortions, and maintain public trust.
Stakeholders note that successful programs like the Track and Trace System should be expanded to additional sectors so that their full benefits, enhanced compliance, stronger revenue assurance, and improved supply chain transparency, can be more widely realized. At the same time, experts emphasize that video analytics may serve as a useful complementary layer for operational visibility, provided it is integrated in a manner that supports, rather than substitutes, established and independently verifiable monitoring frameworks.
Industry experts further suggested that a balanced approach would help reinforce transparency, strengthen compliance and governance, and promote greater confidence across the procurement and regulatory ecosystem.
Copyright Business Recorder, 2025
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