Article of Sanaullah Abro, Director General Customs Valuation and Transit Trade on the Occasion of International Customs Day 2026 Protection of Society through Use of AI and ML in

It is challenging for any Customs administration to strike a balance between compliance and facilitation. In increasingly challenging operational environment Pakistan Customs runs on tight rope putting equal focus on its core functions like revenue collection, trade facilitation, protection of society and security. Advance use of technology and modern application of Artificial Intelligence (AI) and Machine Learning (ML) techniques has made it possible for Customs administrations to cope with the operational challenges otherwise it was not possible for the organization to meet the high standards of competing functions ranging from revenue collection, security and safety of citizens.

Pakistan Customs is one of the oldest organizations in Pakistan which started use of computers and automation in early 1990s adopting main frame computers at Customs House, Karachi. In 2018 first time Pakistan Customs developed a module of Predictive Analytics (PA) which was based on the algorithm of AI and ML. The commitment of customs pushed through cooperation with the international experts from the World Bank and the World Customs Organizations (WCO) achieved a milestone of implementing the first AL/ML based program in Risk Management System (RMS) of Pakistan Customs to achieve the overarching goals of compliance and facilitation. The commitment of customs continued and AI/ML applications were further developed through various modelling and iterations to achieve precise results of targeting risky consignments, hazardous waste, radioactive substance, protecting health and safety of citizens and security of borders caused by the illicit trafficking of weapons, drugs and banned goods.

Under the FBR Transformation Plan an ambitious program of modernization of Pakistan customs was promised and undertaken by customs leadership to counter the proliferating onslaught of smuggling, drugs, under and over invoicing, trade facilitation, safety of citizens from hazardous goods and security of country form movement of illicit cargoes. The plan included number of initiatives including development of Customs Digital Management System (CDMS) in consultation with Maersk international consultants, revamping the RMS system with support of indigenous AL / ML / LLM experts’ team of Lahore University of Management Sciences (LUMS) and from international consultants of MAQTA UAE. Both programs pursue elevation of Pakistan Customs in targeting the risky consignments hurting safety of citizens and security of economic frontiers. The transformation of Customs Digital System is concluded and implementation is underway. The new RMS model’s outcomes are being evaluated before implementation.

The fastest implementation of various reform initiatives in Customs speaks about the unwavering commitment of Pakistan Customs towards protection of citizens and securing legitimate revenues for country.  The program of Pre-arrival clearance and Direct Port Delivery (DPD) has been implemented on ground where traders can file Goods Declarations before arrival of vessels and customs processes and clear the consignment under pre arrival clearance system. This initiative has enabled customs to deliver the consignments directly offloading from ship to the importer as part of developing effective supply chain in Pakistan. Another ambitious program of Faceless Customs for assessment and examination of imports has been implemented aiming at breaking the nexus of connivance for misdeclarations which has brought a significant change management reducing the cost of doing business and better integrity management. Similarly, another large scale program of National Targeting System (NTC) has been initiated. It is aimed at being a national hub for data analytics and alert generation against the illicit trade, movement of smuggled cargoes and compromising the supply chain integrity harmful for the safety of citizens, leakage of revenues, and security of economic borders. A part of the program has already been implemented by putting in place components of WCO Cargo Targeting System (CTS) tracking the suspecting goods and generating the alerts against variable parameters based on manifest information. Earlier its component of passenger profiling namely Global Travel Assessment System (GTAS) a replica of US targeting system has been installed at the airports for profiling of suspected passengers prone for smuggling of drugs, currency and contraband goods across borders. These interventions are perfectly in line with the WCO theme of vigilance and commitment for safer world. 

The current Customs transformation plan progresses with other two projects one is Scanning of Cargo and development of RIAC (Remote Image Analysis Center) system for matching of images at the point of entry and point of exit of transit and transshipment cargo. Secondly implementing of Cargo Tracking system with state of art Cargo Monitoring and Control Room (CMCR) for live tracking of inland movement of non duty paid cargoes.  The programs will help in ensuring compliance and reduction in misdeclarations. National Logistic Cell (NLC) is playing a national role of heavily investing in cargo scanning machines and development of RIAC supporting customs objectives of safety and security of supply chain and safety of citizens against illicit products. The RIAC will be relying on the AI based matching live images with standard image library and taking automated decisions on the veracity of declarations of goods advancing towards auto clearance system.

By the start of 2026, Pakistan Customs has reassured its unwavering commitment towards transition into a highly automated, intelligence-led and technology driven organization augmenting vigilance and commitment for safer world. 

Source: Taxhelpline Team