Deepening Use of Digital Data by Pakistan Customs through Digital Transformation

TEXT: The objective towards the theme of World Customs Organization (WCO) for the year 2022 - “Scaling up Customs Digital Transformation by Embracing a Data Culture and building a Customs Data Ecosystem” - coalesces well with Pakistan Customs Strategy towards digital transformation involving deepened use of digital data and enacting a resilient digital data ecosystem modeled to exploit the digital data efficiently.

Building a digital data culture and deploying data-driven approaches for maximizing trade liberalization through efficient and timely use of digital data offers enormous benefits. Digital data repository can help navigate through the terrain of enacting a formal digital data governance system, standardizing data format and data exchange procedures, offering better data protection regulations, encouraging evidence-based decision making and bridging the gap between customs administration and civil society thereby building an inclusive and open governance system.

Digitization of Pakistan Customs has evolved profoundly through the years. In 2005, Pakistan Customs Computerized Systems (PaCCS) paved way for a paper-less digital environment for trading across the borders and the use of digital data started to seep-in, which later on led to the development of a home-grown well-integrated digital customs system in 2011 by the name of WEBOC – Web Based One Customs. The essential features of WEBOC contributed towards fortifying a robust digital platform to increase Pakistan Customs efficiency and efficient deployment of resources, minimizing dwell time and customs processes, offering a paperless single window environment , reducing cost of doing business and more simplified procedures providing better transparency and integrity than before. In short, it has established an enabling environment for nurturing of digital data culture in Customs, operationalizing itself in a fully digitized environment.

In line with Pakistan’s International Trade Facilitation commitments, the digital ecosystem of Pakistan Customs has seen rapid digital transformation in the past few years through adoption of technology-driven solution in the form of PSW - Pakistan Single Window - to integrate all its trade partners on one digital platform which has potential benefits of adding value to trade, data-driven evidence-based decision making, digitizing supply chains and removing the redundancies and complexities caused due to conventional methodologies of trade locked up in slow processes bearing minimum potential of efficient data analytics and data interpretation hence making the path towards formal digital data governance smoother. PSW offers a single well-integrated robust digital ecosystem incorporating block-chain technology modeled to strengthen digital data culture for capturing the digital data patterns to enhance smooth flow of legal trade through enhanced transparency and data driven solutions while providing controls against the ills of trade such as Trade-Based Money Laundering (TBML) and smuggling of goods by efficient digital data analysis of cross border trade transactions and seizures.

Pakistan Single Window Initiative – led by Pakistan Customs - is a lynchpin of digitization of trade and industry ecosystem in Pakistan. The Initiative is not only well aligned with the 2022 theme of WCO but also provides for digital transformation through well-integrated risk management, data standardization (data format as well as data exchange), harmonization and a robust tariff management system. Moreover, such digital transformation is also going to avert fallout of critical socio-economic situations - like pandemic - by cutting down the physical interface between customs officials and other trader stakeholders and connecting them through a single digital forum.

Customs digital transformation, as aimed through 2022 WCO theme, will help build a digital economy through an integrated approach towards enhancing digital data culture. The digital economy is consolidated through better digital identity, strengthened digital culture, holistic digital policies for digital commerce converging into an all-encompassing digital ecosystem. The 2022 WCO theme resonates well with the national policy of Pakistan towards digital transformation - “Digital Pakistan”- which focuses on digital solutions and use of converging technologies to build resilient future and counter socio-economic fallout from averse events by adopting digital delivery systems, leveraging technology to human capital and digitizing supply chain for efficiency and transparency. True realization of digital transformation particularly at the junction where the trade meets the borders – Pakistan Customs adapting its role across three archetypes: as facilitator, negotiator & enforcer - can lead to an accelerated growth in trade figures as well as Pakistan’s digital economy by improving operational efficiency and adding value to the trade supply chain subsequently keeping pace with an evolving international trade milieu and global digital community for collective good in the global trade ecosystem.

Sania Rasool Bhutto

Assistant Collector of Customs & FPOE (Pakistan Customs)

Copyright Business Recorder, 2022