Pakistan launches first-ever AI customs system to boost transparency, efficiency
Developed by the Federal Board of Revenue (FBR), the new system uses AI, bots, and machine learning to automate the classification and valuation of imported and exported goods. Officials say this will reduce delays, streamline tax assessment and minimize manual interference by customs personnel.
'The new risk management system will bring transparency to the system, reduce human intervention to a minimum and facilitate businesspersons,' according to a statement from PM Shehbaz Sharif's office after he chaired a high-level meeting on the subject.
'With the launch of the new system, there will be an immediate and effective estimation of the classification and cost of goods, resulting in time savings.'
During initial testing, authorities recorded more than 92% improved performance and an 83% increase in identified goods declarations for tax collection. The FBR also reported a one-and-a-half-times increase in green channel clearances compared to previous manual processes.
Sharif described FBR reform as one of the government's top priorities and emphasized the importance of integrating and sustaining the new platform.
'By automating the tax system, we are making it more transparent and effective,' the PM said, adding that the AI-powered system would enable 'ease of doing business and make things easier for taxpayers.'
'Due to reduced human intervention, the system will be more efficient and will save time and money,' he added.
During the meeting, officials also briefed Sharif on ongoing efforts to increase tax collection in the manufacturing sector using video analytics. The system, they said, would allow automated and transparent tax assessment and had shown 98% efficiency in early-stage testing. No timeline for full rollout was given in the statement.
Pakistan's current customs clearance system has long been criticized for its heavy reliance on manual processes, which leave it vulnerable to delays, inefficiencies and corruption. Importers frequently face inconsistent valuation of goods, excessive documentation requirements, and prolonged clearance times at ports, all of which contribute to higher costs of doing business.
The lack of automation and poor risk profiling mechanisms have also led to overburdened inspection processes, creating bottlenecks in trade and undermining investor confidence.
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