To satisfy IMF requirements, Pakistan connects more than 12,800 merchants to a digital system.

In order to improve tax compliance, Pakistan has connected 12,861 major shops to a computerized Point of Sale (POS) system, meeting another requirement imposed by the International Monetary Fund.

As part of ongoing documentation changes, the Federal Board of Revenue claims that key firms such as shopping centers, dealers of textiles and leather goods, and restaurants have been incorporated into its computerized network.

The proposal, which accelerates the registration of Tier-1 stores and allied industries, is in line with IMF obligations to formalize the economy, according to officials.

35,761 branches and 12,861 significant shops have been connected to the POS system thus far. Within the following two years, the government intends to increase this figure to 40,000 Tier-1 merchants.

By the conclusion of the current fiscal year, retailers having yearly sales of more than Rs. 500 million must implement digital invoicing.

According to the FBR, the POS system helps reduce tax evasion and increase revenue collection by enabling computerized invoicing and real-time sales tax monitoring.

Business closure or fines between Rs. 500,000 and Rs. 3 million might follow noncompliance.