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Published 07 Jul, 2025 03:07pm

FBR introduces AI-based custom clearance, risk management system

The Federal Board of Revenue (FBR), under the directives of Prime Minister Shehbaz Sharif, has introduced Pakistan’s first-ever artificial intelligence-based Customs Clearance and Risk Management System (RMS) — a landmark step in automating the country’s trade and tax processes.

During a high-level meeting chaired by the prime minister in Islamabad to review ongoing FBR reforms, it was revealed that the new system will utilise AI and BOTs to estimate the value and nature of goods during import and export.

The RMS, built on modern technology, is designed to evolve continuously through automation and machine learning, in sync with the movement of goods.

Officials informed the meeting that initial testing of the system demonstrated over 92% improvement in performance.

The number of Goods Declarations (GDs) processed for tax collection rose by 83%, while green channel clearances more than doubled.

The system is expected to bring greater transparency, reduce human intervention, and significantly ease processes for the business community.

With AI-driven instant assessments of goods and their valuation, clearance time will be drastically reduced, resulting in improved efficiency.

It was also noted that the system will help ease the workload on customs officials while enhancing both transparency and operational effectiveness.

Prime Minister Shehbaz Sharif emphasized that FBR reform is among the government’s top priorities.

“By automating the tax system, we are ensuring greater transparency and efficiency. This technology-driven model will simplify business operations and support taxpayers,” he said.

He noted that reduced human involvement will save time and resources, making the system more robust and cost-effective. The prime minister directed that the new system be made fully integrated and sustainable.

He also commended the FBR officers and staff involved in developing the new RMS.

The meeting was further briefed on video analytics-based initiatives aimed at improving tax collection in the manufacturing sector.

These automation measures will allow transparent, human-free taxation, increasing revenue while simplifying compliance for businesses.

Initial tests showed the new system delivered 98% efficiency, and its implementation across the manufacturing sector is expected to substantially boost tax revenue.

The meeting was attended by Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, the FBR Chairman, and other senior government officials.

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