FBR introduces AI-based custom clearance

ISLAMABAD (Web Desk) — In a major step towards modernizing Pakistan’s trade and taxation infrastructure, the Federal Board of Revenue (FBR) has launched the country’s first artificial intelligence-based Customs Clearance and Risk Management System (RMS), under the direction of Prime Minister Shehbaz Sharif.

The landmark system, designed to streamline import and export processes, was unveiled during a high-level meeting in Islamabad chaired by the Prime Minister to review ongoing FBR reforms.

According to officials, the AI-driven RMS employs machine learning and automation to assess the value and nature of goods during cross-border trade. The system also incorporates BOTs to reduce human intervention and enhance efficiency.

Initial tests showed promising results, with a 92% improvement in performance. The number of Goods Declarations (GDs) processed for tax collection increased by 83%, while green channel clearances more than doubled.

Authorities say the new system will significantly reduce clearance times, enhance transparency, and ease procedures for the business community. It also aims to lessen the workload on customs officials and increase operational effectiveness.

“This technology-driven model will simplify business operations and support taxpayers,” said Prime Minister Sharif, stressing that reforming the FBR is a top government priority. “By automating the tax system, we are ensuring greater transparency and efficiency.”

The Prime Minister emphasized the importance of making the system fully integrated and sustainable. He also praised the FBR team for their efforts in developing the advanced RMS platform.

The meeting also included a briefing on upcoming video analytics-based initiatives targeting improved tax collection in the manufacturing sector. These automation tools are designed to enable transparent, human-free tax assessments and compliance.

According to the FBR, initial testing of the system in the manufacturing sector showed 98% efficiency, and full-scale implementation is expected to substantially boost tax revenues.

The session was attended by Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, FBR Chairman Amjad Zubair Tiwana, and other senior officials.