FBR Launches PAK First AI-Based Customs Clearance System

In a landmark move toward modernizing trade facilitation in Pakistan, the Federal Board of Revenue (FBR) has launched the nation’s first Artificial Intelligence (AI)‑based Customs Clearance and Risk Management System. Guided by Prime Minister Shehbaz Sharif’s vision of a digitized, efficient tax administration, this system promises to reshape customs operations across the country.

• 98 % operational efficiency achieved during pilot testing

• 92 % surge in performance, as per FBR data

• 83 % jump in identified declarations for tax collection

• 2.5× increase in shipments cleared via “Green Channel”

• Reduced human intervention through AI‑powered valuation and classification

• Programmatically built to learn and evolve with transaction data

The AI‑driven Customs Clearance and Risk Management System uses machine learning algorithms to:

Automatically assess the description, value, and classification of imported/exported goods

Spot high‑risk declarations that may need detailed review

Send low-risk consignments through the Green Channel for faster clearance

During trials, FBR officials reported ~98 % overall efficiency and a 92 % boost in key performance metrics 

• Faster Clearance
  Reduced processing times will help importers and exporters clear goods quickly, lowering their costs and improving competitiveness.

• Transparency & Reduced Corruption
  AI replaces subjective human judgment, creating a neutral, data‑driven process.

• Efficient Tax Collection
  More accurate risk detection translates to more customs duties being correctly levied—and paid.

• Easing Customs Workflows
  Routine valuation and classification tasks are now automated, allowing officers to focus on complex cases.

• Faceless Processing
  Cargo declarations are received digitally—no in-person meeting between traders and appraising officers.

• Central Appraising Unit (CAU)
  Based at Karachi's South Asia Pakistan Terminal, staffed with 55 trained officers and housed in secure, distraction‑free environments 

• Random Assignment & FIFO Logic
  Declarations are assigned via first-in, first-out, minimizing bias.

• Automated Risk Analytics
  Identifies red/green channel items automatically using AI‑established rules and patterns learned over time.

• Performance Management
  An incentive system is in place for appraising officers based on accuracy, speed, and transparency 

Ease of Doing Business Boost
Faster customs clearance aligns with global best practices, promising an improved position in international indices.

FBR’s Digital Transformation
AI‑powered systems complement other initiatives like the Pakistan Single Window for cross‑agency digital trade 

Aligning With IMF & Global Standards
These reforms were encouraged as part of conditions tied to Pakistan’s $7 billion IMF agreement .

Model for Other Agencies
The success sets a precedent for AI adoption across taxation, trade, and public service sectors.

• Prime Minister Shehbaz Sharif
  “Digitizing this system is a top government priority… We’re making customs more transparent and business‑friendly.” 

• Finance Minister Aurangzeb
  Applauded the reduction in corruption and improved efficiency.

• FBR Chairman Rashid Mahmood Langrial
  Noted that Karachi traders and customs professionals have welcomed the system’s rollout 

Pakistan’s FBR is leading a digital revolution in customs clearance with its brand‑new AI‑based system. With 98 % efficiency, record‑breaking declaration processing, and unprecedented transparency, this initiative sets a clear path toward transforming trade facilitation. As the system rolls out nationwide, businesses and citizens alike stand to gain from improved ease of doing business, enhanced governance, and a modernized customs ecosystem.