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FBR Launches AI-Based Customs and Tax Risk Management

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Pakistan Implements AI-Based Customs Clearance System to Enhance Efficiency and Transparency

In a groundbreaking move aimed at modernizing customs processes, Pakistan has introduced its first artificial intelligence (AI)-based Customs Clearance and Risk Management System (RMS). Initiated under the directive of Prime Minister Muhammad Shehbaz Sharif, this innovative solution will employ AI technology to accurately estimate costs and identify the nature of goods during imports and exports, significantly improving overall customs efficiency and facilitating ease of business.

According to a detailed briefing presented to Prime Minister Shehbaz Sharif, the newly deployed system will utilize AI-driven bots to precisely evaluate shipment details and commodity costs, minimizing reliance on manual interventions. Moreover, through machine learning techniques, the automated system will continually enhance performance from the data processed during exports and imports operations.

Initial testing has shown impressive results, indicating more than a 92 percent improvement in operational effectiveness. The pilot phase also identified an 83 percent increase in accurate Goods Declarations (GD) assessments for tax collection purposes. Additionally, clearance of goods through the green channel increased by approximately two-and-a-half times compared to previous figures, highlighting the system’s efficiency in streamlining clearance procedures.

The deployment of this AI-powered RMS is expected to significantly increase transparency across customs processes, substantially reduce human interaction, and deliver notable convenience for businesses. Authorities emphasized that timely and precise assessment of goods through the innovative system would lead to considerable savings in both time and resources, effectively reducing workloads on customs officials.

During the meeting reviewing ongoing reforms at the Federal Board of Revenue (FBR), Prime Minister Shehbaz Sharif underscored the government’s commitment to transforming the tax administration into an automated, transparent, and highly effective system. He stressed that introducing modern technology within the tax framework was essential to ensure timely collection and improve business conditions for taxpayers.

The meeting also touched upon introducing technology-based revenue enhancement mechanisms specifically targeting the manufacturing sector. Officials informed the premier about ongoing video analytics initiatives designed to automate and streamline tax collection processes. Early pilot testing of the analytics system demonstrated an impressive 98 percent accuracy rate, underscoring its potential for boosting government revenue, increasing transparency, and significantly lowering the cost involved in tax monitoring and compliance.

Prime Minister Sharif appreciated the dedicated efforts of the team responsible for crafting and deploying the advanced risk management and collection systems. He directed officials to further enhance and ensure the sustainability of these technological upgrades, reiterating the need for continued focus on improving efficiency, transparency, and cost-effectiveness within the tax framework.

Federal Ministers Muhammad Aurangzeb and Attaullah Tarar, along with the Chairman of the FBR and senior officials from relevant authorities, attended the review session.

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