The Chainstore Association of Pakistan (CAP), the official representative of the country’s organised retail sector, has raised serious concerns over the deteriorating environment for tax-compliant retailers. This comes amid aggressive enforcement actions and the persistent failures of the Federal Board of Revenue’s (FBR) Point of Sales (POS) integration system.
The organised retail sector, a vital part of Pakistan’s retail and wholesale economy, employs over one million individuals and supports an extensive ecosystem including shopping malls, manufacturers, service providers, and the cottage industry. Pakistan’s retail brands also contribute to the national economy through exports and cross-border e-commerce.
CAP criticized the increasing challenges faced by tier-1 retailers, who were early adopters of the POS system and contribute around 25–30% of their turnover in taxes. These retailers are now caught in what CAP calls a “perfect storm” — comprising high taxes, complex procedures, punitive enforcement, and persistent technical failures in the POS system.
Several new regulations introduced in 2025 — including SRO 69(I)/2025, SRO 55(I)/2025, and the Tax Laws (Amendment) Ordinance 2025 — have worsened the situation. Rather than addressing the technical issues, these regulations have only increased the compliance burden.
Key technical flaws in the FBR’s POS integration highlighted by CAP include:
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POS profile expiry disconnections, rendering sales invoices unverifiable.
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False “disconnected” status flags even when systems are actively syncing.
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The inadequate support infrastructure of Pakistan Revenue Automation Limited (PRAL) to resolve these issues in a timely and efficient manner.
CAP has urged authorities to reconsider the enforcement-first approach and instead prioritize resolving systemic technical failures to protect compliant retailers who are essential to the national economy.
