80% of Tier-1 retail branches disconnected from FBR POS system, compliance falls below 10%: report

Federal Board of Revenue’s (FBR) data shows that a large majority of registered Tier-1 retail branches remain disconnected from the Point of Sale (POS) system, raising concerns about compliance under the retail documentation drive, Business Recorder reported. 

According to the latest data dated February 16, 2026, 16,082 Tier-1 branches are registered with the FBR, but 12,851 of them — around 80% — are marked as “Disconnected.” Only 1,541 branches are currently connected, while 1,690 are listed as under implementation, resulting in an overall compliance rate of 9.6%.

The FBR has integrated 11,141 large retailers into the POS system up to February 2026. However, the branch-level compliance data reflects weak enforcement and limited real-time monitoring across the retail sector. 

The POS initiative was introduced under the Finance Act 2019 as part of the “Digital FBR” vision to document retail transactions. The program targeted Tier-1 retailers, including large chains, outlets located in shopping malls, and businesses with high electricity consumption, making their integration mandatory.

In 2021, the strategy was expanded to promote digitisation and documentation, including the introduction of a POS Prize Scheme offering monthly rewards of up to Rs1 million to encourage consumers to demand documented receipts.

Despite enforcement measures launched since 2020, compliance levels remain low across major sectors.

Sector-wise data shows that general retailers have the lowest compliance rate at 8.7%, with 11,214 out of 13,854 branches disconnected. In the leather and textile sector, 741 out of 1,042 branches are disconnected, resulting in an 11.3% compliance rate. The restaurant sector shows relatively higher compliance at 17.8%, but 896 out of 1,186 branches remain disconnected.

Tax experts say the data indicates that a substantial portion of Tier-1 retailers continues to operate outside the real-time monitoring framework, despite years of implementation efforts.