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⚖️ Islamabad High Court Takes Up Challenge to FBR's Production Monitoring System (PMS)

**WP No. 3470/2026**
**Ghazi Fabrics International Ltd. & Others vs. Federation of Pakistan & Others**

The Islamabad High Court is hearing a significant case that could impact industries required to install the **Production Monitoring System (PMS)** and similar electronic monitoring systems.

What is the dispute?

Textile manufacturers have challenged FBR's requirement to:

* Install the Production Monitoring System (PMS)
* Pay installation costs
* Bear ongoing monitoring expenses

The petition argues that these obligations have been imposed through **Rules, SROs, and STGOs**, even though the **Sales Tax Act, 1990** does not expressly authorize them.

The Key Legal Question

**Can FBR create costly compliance obligations through Rules, SROs, or STGOs without clear authority in the parent law?**

Why does this matter?

The decision could affect businesses in sectors such as:
✔ Textile
✔ Sugar
✔ Cement
✔ Fertilizer
✔ Beverage
✔ Dairy
✔ Other notified industries

# # # Current Position

The Islamabad High Court has admitted the petition and issued an initial order. The legality of these PMS-related provisions is **still pending final adjudication**.

**Delegated legislation (Rules, SROs, and STGOs) cannot expand powers beyond what Parliament has authorized in the Sales Tax Act.**

This case may become an important precedent on the limits of administrative powers and taxpayer compliance obligations.

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