ISLAMABAD: For the first time in Pakistan’s history, the Federal Board of Revenue (FBR) has launched an Artificial Intelligence (AI)-based Customs Clearance and Risk Management System (RMS) aimed at enhancing transparency, reducing human intervention, and improving tax collection efficiency.

Prime Minister Shehbaz Sharif, while chairing a meeting on FBR’s ongoing reform initiatives, praised the FBR and the Intelligence Bureau for their efforts to boost tax revenue. He stressed the need for all relevant departments to work in unison to strengthen the national economy.

Officials informed the prime minister that the new RMS uses AI and bots to estimate the cost and nature of goods during import and export.

Initial testing of the system demonstrated over 92pc improvement in performance. It led to an 83pc increase in Goods Declarations identified for taxation and a 2.5 times surge in green channel clearances, indicating enhanced speed and accuracy in customs processing.

PM praises Rs178bn recovery in crackdown on tax evasion

The RMS is expected to bring greater transparency, reduce pressure on customs officials, and facilitate businesses by enabling faster and more precise assessments of goods and their value. Officials noted that the move would save time and improve ease of doing business.

Prime Minister Shehbaz termed FBR reforms a key government priority and praised the development of the technology-based system. “By automating the tax system, we are making it more transparent and effective,” he said, adding that reduced human involvement would make the system more efficient, saving both time and money.

He directed authorities to ensure the system remains integrated and sustainable.

The meeting also included a briefing on the use of video analytics in the manufacturing sector to automate tax collection and enhance transparency.

The system, described as cost-effective and 98pc efficient in early trials, is expected to significantly boost revenue while limiting human interference.

Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, FBR chairman, and other senior officials were present at the meeting.

In a separate meeting, the prime minister was presented with a report from the FBR and Intelligence Bureau on joint efforts to curb tax evasion and hoarding. The report revealed that operations by the two bodies had led to the recovery of Rs178bn.

Of this amount, Rs69bn was recovered through company mergers and telecom sector dues. The IB conducted 515 raids across various sectors — including sugar, animal feed, beverages, edible oil, tobacco, and cement — resulting in Rs10.5bn in additional taxes.

Published in Dawn, July 8th, 2025