FBR introduces Pakistan’s first AI-powered customs clearance system

The Federal Board of Revenue (FBR) has unveiled Pakistan’s “first-ever” artificial intelligence (AI)-based Customs Clearance and Risk Management System (RMS).

The new system, launched on the directive of Prime Minister Shehbaz Sharif, aimed at enhancing transparency, reducing human intervention, and facilitating trade, is expected to enhance the efficiency of import-export operations.

The development came to light during a meeting regarding matters related to FBR held on Monday, read a statement released by the Prime Minister’s Office (PMO).

The briefing was told that under this system the cost and nature of goods, during import and export operations, will now be assessed using AI and bots.

It was learnt that the risk management system will continue to improve automatically through machine learning, alongside the movement of goods.

The meeting was informed that during initial testing, the new system demonstrated over 92% improved performance. The RMS not only determined 83% more Goods Declarations (GDs) for tax collection but also enabled 2.5 times more GDs to be cleared through the green channel.

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The attendees were told that the new RMS will bring transparency to the system, minimize human intervention, and facilitate the business community.

The system will allow instant and efficient estimation of goods and their value, resulting in time savings, the meeting noted.

“Reforming the FBR is among the top priorities of the government,” said PM Shehbaz.

“By automating the tax system, we are making it more transparent and effective. This technology-driven system will ease doing business and provide convenience to taxpayers,” he added.

The prime minister also instructed that the new system be made integrated and sustainable, and praised the officers and staff involved in developing the new RMS.

Moreover, a review meeting, chaired by PM Shehbaz, was held to assess ongoing FBR reforms.

The meeting was informed about video analytics-based measures to improve tax collection in the manufacturing sector.

The PM was told that through this system, tax recovery will be conducted in an automated and transparent manner. This will increase government revenue and allow taxpayers to pay taxes without human interaction.

The system is low-cost and showed 98% efficiency during initial testing. Officials also briefed the meeting on the system’s potential to increase tax collection from the manufacturing sector.