FBR introduces Pakistan’s first AI-based custom clearance, risk management system

The Federal Board of Revenue (FBR), under the direction of Prime Minister Muhammad Shehbaz Sharif, has for the first time in Pakistan’s history introduced the Artificial Intelligence based Custom Clearance and Risk Management System (RMS).

During a meeting chaired by the prime minister held here to review the ongoing reforms measures by the FBR, it was informed that under this new system, estimation of cost and nature of goods during import and export will be conducted by Artificial Intelligence and BOTs.

The new risk management system, based on modern technology, will continuously improve through automation using machine learning, along with the movement of goods.

“During the initial testing of the new system, over 92% improved performance was observed.”

The briefing showed that in initial testing, not only was 83% more Goods Declarations (GD) determined for tax collection, but goods clearance through the green channel also increased two and a half times.

With the launch of the new system, immediate and effective estimation of goods and their cost will be possible, resulting in time savings.

The meeting was further informed that the implementation of the new system will reduce pressure on customs officials, enhance transparency and efficiency, and facilitate businessmen.

The meeting was briefed on video analytics-based measures to increase tax collection in the manufacturing sector.

With this system, tax collection in these sectors will be automated and conducted transparently, which will increase government revenue and allow taxpayers to pay taxes without human interference.

The meeting was also informed that this system is cost-effective and showed 98% efficiency during initial testing. The meeting also reviewed the potential for increased tax revenue following its implementation in manufacturing sectors.

It was informed in the meeting that the new risk management system will bring transparency to the system, minimize human intervention, and provide ease to businessmen.