Islamabad, July 7, 2025 – In a landmark development for trade and taxation, Pakistan has introduced its first-ever Artificial Intelligence (AI)-based Risk Management System (RMS) to modernize Customs operations and streamline import-export clearance processes.
This cutting-edge initiative by the Federal Board of Revenue (FBR), under the guidance of Prime Minister Muhammad Shehbaz Sharif, marks a significant milestone in Pakistan’s digital transformation journey.
During a high-level meeting chaired by the prime minister to review ongoing FBR reforms, officials shared that the newly implemented AI-powered RMS will play a critical role in analyzing the nature and cost of goods at the time of import and export. The system leverages machine learning and automation to enhance accuracy and efficiency in Pakistan Customs clearance, with continuous improvements expected through real-time data integration.
Initial testing of the RMS has shown remarkable results. Officials reported a 92% improvement in performance, with an 83% increase in the accurate determination of Goods Declarations (GDs) for tax collection. Furthermore, clearance through the green channel rose by 2.5 times, drastically reducing delays for compliant traders.
The new RMS brings transparency and objectivity to Customs clearance operations by minimizing human intervention. This is a major breakthrough for Pakistan’s trading community, as it promises quicker clearance, enhanced trust in the system, and reduced compliance costs. Automated risk profiling will also help customs officials focus on high-risk consignments, improving national security and revenue collection.
Prime Minister Shehbaz Sharif emphasized that reforming the FBR and Pakistan Customs is a top priority for his government. He noted that the use of AI and automation will make the tax system more transparent and effective, reducing bureaucratic bottlenecks and facilitating business operations.
“By adopting technology-driven systems like the RMS, we aim to create an environment that promotes ease of doing business, while also ensuring transparency and efficiency in Customs clearance,” the prime minister stated.
The prime minister further directed that the new RMS should be made fully integrated and sustainable for long-term benefits. He commended the FBR officials and technical teams for their efforts in developing the new system.
The meeting also reviewed AI-based video analytics tools aimed at enhancing tax collection in the manufacturing sector. These digital tools are expected to significantly boost revenue, reduce tax evasion, and allow taxpayers to fulfill obligations without manual interference.
Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, FBR Chairman, and other senior officials attended the meeting. The AI-based RMS is being hailed as a transformative step in redefining Pakistan’s Customs clearance landscape.