Tyre manufacturers in Pakistan are facing a new compliance requirement. The Federal Board of Revenue (FBR) has directed registered manufacturers to install electronic production monitoring systems by November 30, 2026.
The new system will record tyre production in real time. It will also transmit manufacturing information to the tax authority.
The directive was issued under Sales Tax General Order No. 32 of 2026 on October 30, 2026. It forms part of the FBR's wider efforts to improve sales tax compliance.
This development could change how the tyre industry in Pakistan records and reports production. Here is what manufacturers need to know about the new rules, deadline and monitoring process.
What Is the New FBR Order for Tyre Manufacturers?
The FBR has introduced electronic monitoring requirements for registered tyre manufacturers. Under the order, manufacturers must install prescribed hardware and software at their production facilities.
The system will monitor tyre production and send the recorded information to the FBR's central control system. This will allow the tax authority to access production data electronically.
The directive is identified as Sales Tax General Order (STGO) No. 32 of 2026. It was issued on October 30, 2026, with November 30, 2026, set as the installation and operationalisation deadline.
The requirement applies to all registered tyre manufacturers. The nine companies initially identified by the FBR do not represent the complete list of affected businesses.
Manufacturers can consult the official Federal Board of Revenue website for the relevant order and further regulatory information.
How Will the Electronic Tyre Production Monitoring System Work?
The new FBR tyre monitoring system will record production activity through prescribed electronic equipment. It will connect relevant manufacturing processes with a central monitoring system.
Automatic tyre production counting: The equipment will count each cured tyre as it moves through the monitored production process. It is also designed to distinguish actual production from dry runs, maintenance and warm-up cycles.
Tyre size and product identification: The system will identify tyre specifications through approved stock keeping unit (SKU) information. This includes details such as tyre diameter, width, tread pattern and weight.
Real-time data transmission: Production events will be recorded electronically. The information will then be transmitted to the FBR's central control system.
Production stoppage detection: The monitoring arrangement is designed to identify unexpected interruptions, equipment failures and production stoppages.
Tampering detection: The system will also identify attempts to bypass or interfere with monitoring equipment. Electronic records and audit logs can support further checks.
The FBR's official tyre-sector monitoring procurement document provides technical information about the proposed production monitoring arrangements.
Which Tyre Manufacturing Companies in Pakistan Are Affected?
The FBR has initially identified nine tyre manufacturing companies for implementation of the electronic monitoring system. These companies are part of the initial implementation information.
| No. | Tyre Manufacturing Company |
|---|---|
| 1 | Ghandhara Tyre and Rubber Company Ltd |
| 2 | Service Long March Tyres Ltd |
| 3 | Service Tyres (Private) Ltd |
| 4 | Panther Tyres Ltd |
| 5 | Diamond Tyres Ltd |
| 6 | Service Industries Ltd |
| 7 | Ghauri Tyre and Tube (Pvt) Ltd |
| 8 | Crown Tyres Ltd |
| 9 | United Rubber (Pvt) Ltd |
The initial list should not be treated as exhaustive. The FBR has clarified that the monitoring requirement covers all registered tyre manufacturers, including businesses that are not named in the initial list.
This makes the directive relevant to the wider tyre manufacturing industry in Pakistan, not only the nine companies listed above.
What Is the November 30 Deadline for Tyre Manufacturers?
Registered tyre manufacturers have until November 30, 2026, to install and operationalise the prescribed electronic monitoring system.
The deadline covers the required monitoring arrangements at manufacturing facilities. Businesses must ensure that the equipment is installed and capable of recording and transmitting production information.
The implementation process requires suitable hardware and software. Manufacturers must also arrange the supporting information technology infrastructure.
Reliable internet connectivity and electricity are necessary for the monitoring equipment to operate. Manufacturers are responsible for providing the required facilities and access.
The order also places responsibility for applicable installation, infrastructure and system-related costs on manufacturers. Relevant field formations are expected to coordinate with manufacturers and the authorised service provider.
Manufacturers should review the official order and coordinate with the relevant FBR officials to understand their specific implementation responsibilities before the deadline.
Why Is FBR Introducing Electronic Monitoring in the Tyre Industry?
The main purpose of electronic monitoring is to improve production transparency and sales tax compliance. The FBR wants more reliable information about manufacturing activity and finished tyre output.
Better production records: Automated counting can provide a consistent record of finished tyre production. This can reduce dependence on manually maintained production information.
Greater transparency: Real-time monitoring gives the tax authority access to production events. It can help establish a clearer record of manufacturing activity.
Improved tax compliance: Electronic production records can be compared with relevant business and tax declarations. This may help identify differences that require further examination.
Reduced unreported production: Monitoring aims to make production activity more visible. It can help the FBR identify output that may otherwise remain outside the prescribed recording process.
The wider national sales tax gap figure associated with the FBR's broader compliance efforts is estimated at approximately Rs. 3.7 trillion. This is an overall estimated tax gap, not a loss attributed specifically to tyre manufacturers.
The new directive therefore represents another step towards digital monitoring across Pakistan's manufacturing sector.
Will the New FBR Rules Increase Tyre Prices in Pakistan?
The new monitoring requirements may create additional compliance costs for tyre manufacturers. These expenses can include monitoring equipment, software, installation and technical support.
Manufacturers may also need to account for internet connectivity, electricity, maintenance and other operational requirements. The actual cost will depend on the facilities and infrastructure required by each business.
Some manufacturers may absorb these costs within their existing operating budgets. Others may review their overall production and pricing arrangements.
However, no confirmed tyre price increase has been established as a direct result of this FBR order. The directive itself does not announce a new retail price or an official price revision.
Consumers should follow manufacturer announcements and verified market updates rather than assume that tyre prices will automatically increase after the monitoring requirement.
What Does Electronic Monitoring Mean for Pakistan's Tyre Industry?
The new electronic production monitoring system will introduce additional operational responsibilities for tyre manufacturers. Companies will need to integrate monitoring equipment into relevant production processes.
Manufacturers may need to review their production workflows, equipment access and internal record-keeping procedures. They will also need to maintain the infrastructure required for continuous monitoring.
The system could improve the visibility of manufacturing activity. It may also support more consistent production records and reconciliation with tax declarations.
Smaller manufacturers may face additional implementation challenges. Their ability to arrange equipment, connectivity and technical support could affect how smoothly they meet the deadline.
The long-term effect on the tyre market in Pakistan will depend on implementation, compliance costs and how manufacturers adapt to the new requirements.
What This Means for Pakistan's Automotive Market
Tyres are an important part of Pakistan's automotive supply chain. Changes in manufacturing regulations can therefore be relevant to vehicle owners, tyre retailers, distributors and automotive businesses.
The new FBR rules focus on production monitoring and tax compliance. They do not introduce a new tyre specification or announce a change in vehicle tyre requirements.
For consumers, the immediate development to watch is whether manufacturers announce any changes to their operations or prices after implementation.
Vehicle owners can also continue to maintain their tyres through regular inspection and suitable tyre-care products. Asad Autos offers a range of car care products for automotive maintenance.
For tyre appearance and routine care, customers can also explore Tyre Gel High Gloss Tire Shine at Asad Autos.
Final Thoughts
The FBR's new directive marks an important regulatory development for tyre manufacturers in Pakistan. Registered manufacturers must install and operationalise electronic production monitoring systems by November 30, 2026.
The system will record tyre production, identify product specifications and transmit manufacturing data to the FBR. Nine companies have been initially identified, but the requirement applies to all registered tyre manufacturers.
The policy aims to improve production transparency and strengthen tax compliance. Its impact on tyre prices remains uncertain, and no direct price increase has been confirmed.
For more automotive industry updates, vehicle care information and accessories, visit Asad Autos.
