ISLAMABAD: The Federal Board of Revenue (FBR) has introduced Pakistan’s first Artificial Intelligence-based Customs Clearance and Risk Management System (RMS), a move aimed at modernizing the country’s customs operations.
The new system was developed on the directives of Prime Minister Shehbaz Sharif. During a review meeting chaired by the prime minister, officials explained that the system uses artificial intelligence and bots to assess the nature and cost of goods during imports and exports. This AI-driven system is designed to continuously improve through automation, utilizing machine learning to enhance the movement and clearance of goods.
Initial testing of the system revealed a 92% improvement in performance. It also resulted in a 83% increase in Goods Declarations (GD) determined for tax collection and saw a two-and-a-half-fold rise in the clearance of goods through the green channel.
The new system aims to bring transparency, reduce human intervention, and ease the process for businesses. By enabling the immediate and accurate estimation of goods and their costs, it will save both time and effort for businesses. Furthermore, the system will reduce pressure on customs officials, enhance operational efficiency, and improve transparency.
Prime Minister Shehbaz Sharif emphasized that reforming the FBR is a top priority for the government, adding that the automation of the tax system will make it more transparent and effective. He highlighted that reducing human intervention would make the system more efficient, saving both time and money for the country. The prime minister also urged the concerned authorities to ensure the new system is integrated and sustainable.
The meeting also discussed the use of video analytics-based measures to increase tax collection in the manufacturing sector. The new system will automate tax collection in these sectors and enhance transparency, which is expected to increase government revenue while enabling taxpayers to pay taxes without human interference. The system showed 98% efficiency during its initial testing.
The meeting, attended by Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, FBR Chairman, and other senior government officials, also reviewed the potential for increased tax revenue following the implementation of the system in the manufacturing sectors.
