Pakistan launches AI customs system to tackle tax evasion
The new AI-powered customs system in Pakistan promises faster trade, reduced corruption, and improved tax collection through automated risk profiling and goods assessment.
Pakistan has launched its first AI-powered Customs Clearance and Risk Management System (RMS) to cut tax evasion, reduce corruption, and modernise port operations by automating inspections and declarations.
The initiative, part of broader digital reforms, is led by the Federal Board of Revenue (FBR) with support from the Intelligence Bureau.
By minimising human involvement in customs procedures, the system enables faster, fairer, and more transparent processing. It uses AI and automated bots to assess goods’ value and classification, improve risk profiling, and streamline green channel clearances.
Early trials showed a 92% boost in system performance and more than double the efficiency in identifying compliant cargo.
Prime Minister Shehbaz Sharif praised the collaboration between the FBR and IB, calling the initiative a key pillar of national economic reform. He urged full integration of the system into the country’s digital infrastructure and reaffirmed tax reform as a government priority.
The AI system is also expected to close loopholes in under-invoicing and misdeclaration, which have long been used to avoid duties.
Meanwhile, video analytics technology is trialled to detect factory tax fraud, with early tests showing 98% accuracy. In recent enforcement efforts, authorities recovered Rs178 billion, highlighting the potential of data-driven approaches in tackling fiscal losses.
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