ISLAMABAD: The Federal Board of Revenue (FBR) has achieved a major milestone in its digitalization and modernization agenda by officially signing a contract for the Strategic Feasibility Assessment and Solution Design of the National Cargo Tracking System (CTS) and the e-Bilty mechanism. In this regard, the signing ceremony between the FBR and the Korean vendor company was held at the FBR House here on Thursday. The new system would play a key role in reducing the tax gap of Rs 7.1 trillion through digital interventions to check smuggling and sales tax evasion, FBR senior officials said. READ MORE: Aurangzeb briefed about digitisation processes of FBR The project, financed by the World Bank under the Pakistan Raises Revenue Program (PRRP), is spearheaded by the National Targeting Center (NTC). It aims to replace the traditional, manual, and paper-based goods transport document, locally known as the “Bilty”, with a centralized, technology-driven electronic transport waybill (e-Bilty). In his welcome address, Dr. Najeeb, FBR Project Director and Chief Reforms & Modernisation, stated that the reliance on manual checks by multiple agencies and paper documentation causes significant bottlenecks, prolongs transit times for legitimate traders, and creates opportunities for tax evasion and smuggling. The envisioned CTS platform will enable the real-time tracking of commercial cargo from the point of origin to the destination. By generating an e-Bilty with a unique, instantly verifiable QR code, the system will allow Customs enforcement teams to efficiently segregate compliant from non-compliant cargo, Dr. Najeeb added. “This initiative is a cornerstone of our broader vision for a digital and transparent economy,” stated Rashid Mahmood Langrial, the Chairman of the FBR, during the signing ceremony. “By integrating the CTS with existing systems like WeBOC, STRIVE (Sales Tax Real-time Invoice Verification), and the Anti-Smuggling Portal, we are closing the loopholes that allow for fake sales tax invoices and misdeclaration of goods. This ensures a level playing field for honest businesses and secures the nation’s revenue.” The FBR has made three major interventions under the transformation plan to check smuggling and sales tax evasion. (i) production monitoring at manufacturing premises; (ii) digital invoicing and (iii) cargo tracking system of imported and local vehicles to identify smuggled goods, the FBR Chairman said. The system will be designed to integrate securely with internal FBR systems and necessary external databases like NADRA and Motor Registration Authorities, the FBR Chairman added. The Member Customs Operations Syed Shakeel Shah added, “The goal is to facilitate trade by minimizing en-route physical inspections and delays. The CTS will empower our officers with risk-based data, transforming our operational enforcement from manual roadblocks to intelligent, digital monitoring.” He said that the system will allow Customs Enforcement teams to immediately identify smuggled goods or cargo moving without the payment of sales tax. It protects our economy from the dual threats of smuggling and tax evasion, and crucially, it relieves the administrative burden on our officers and the logistics sector. We are moving from physical roadblocks to digital checkpoints. Terming it a critical project, FBR Member Customs Operations stated that the complaints of irregularities in the manual system would be checked through the new system. The FBR has installed trackers at 16,000 petroleum vehicles with the help of FBR’s integrated system for monitoring the movement of POL products by March 2026, he added. After the signing, the contract initiates a comprehensive assessment and technical design phase. The selected consulting firm is tasked with analyzing international best practices, evaluating high-level ICT infrastructure needs, reviewing the legal and policy framework, and delivering a detailed system architecture and implementation roadmap. This blueprint will pave the way for the eventual nationwide deployment of the CTS, bringing Pakistan’s logistics and transit trade regulations in line with global standards. Copyright Business Recorder, 2026