In a major move to modernize Pakistan’s trade infrastructure, the Federal Board of Revenue (FBR) has launched the country’s first artificial intelligence-based Customs Clearance and Risk Management System (RMS).
This initiative, rolled out under the direction of Prime Minister Muhammad Shehbaz Sharif, is aimed at transforming the nation’s import-export processes by enhancing transparency, minimizing human intervention, and significantly improving operational efficiency.
The launch was announced during a high-level meeting chaired by Prime Minister Sharif in Islamabad to review ongoing reform measures by the FBR.
Automation at the core of Trade Reform
The new RMS leverages AI and automated bots to assess the nature and cost of goods during import and export operations. According to officials, the system continuously learns and improves through machine learning algorithms, adapting with the movement of goods and changes in trade patterns.
“By automating the tax system, we are making it more transparent and effective,” Prime Minister Shehbaz Sharif said during the briefing. “This technology-based modern system will bring ease in doing business and provide convenience to taxpayers.”
The prime minister further emphasized the need for the system to be integrated and sustainable, and commended the FBR officers and staff involved in its development.
Early results show significant efficiency gains
Initial testing of the AI-driven system has shown promising results:
- 92% performance improvement reported during trials
- 83% increase in Goods Declarations (GDs) identified for tax collection
- 2.5 times more GDs processed through the green channel, significantly accelerating clearance times
Officials noted that the system’s real-time evaluation of goods and their values leads to faster processing, saving both time and resources for traders and customs officials alike.
Transparency and Business Facilitation
One of the key goals of the AI-powered RMS is to reduce discretionary human involvement, long seen as a source of inefficiency and potential corruption in customs operations. By automating risk assessments and tax evaluations, the system is expected to build trust with the business community and improve Pakistan’s ease-of-doing-business rankings.
“This system will bring transparency to the system, minimize human intervention, and provide ease to businessmen,” a senior official briefed during the meeting stated.
The automation is also projected to reduce pressure on customs staff, improve compliance, and facilitate smoother international trade, particularly important for economies in Asia and the Middle East seeking more seamless trade corridors.
Expansion into Manufacturing Sector
The meeting also highlighted video analytics-based reforms aimed at increasing tax collection in Pakistan’s manufacturing sector. Using AI-driven surveillance and automation tools, the FBR plans to track production volumes and tax liabilities more accurately.
Officials reported that this system is cost-effective, showing 98% efficiency during early trials, and holds strong potential to increase government revenue while making tax compliance more transparent and accessible.
Key Step in Pakistan’s Digital Economic Vision
The RMS launch is part of a broader strategy by the Pakistani government to digitize governance and public financial systems, aligning with global trends in e-governance and AI-driven public service delivery.
With rising digital adoption across South Asia and the Middle East, Pakistan’s AI customs system may serve as a regional model for intelligent trade management, enhancing cross-border efficiency while curbing leakages and improving regulatory oversight.
Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Chairman FBR, and other senior government officials were present at the meeting to discuss implementation plans and expansion opportunities.