Prime Minister Orders Comprehensive Overhaul of Customs System

In an effort to revamp a state department perceived as highly susceptible to corruption, Prime Minister Shehbaz Sharif has mandated a complete restructuring of the customs inspection and valuation protocols. The aim is to establish a fully digital and “faceless” system to diminish instances of bribery, streamline bureaucratic processes, and facilitate smoother trade operations.

This declaration, which took place during a meeting concerning the unbiased evaluation of customs procedures, is a component of the broader scheme by Sharif’s administration to bolster investor assurance and fulfill essential structural criteria established in conjunction with the International Monetary Fund (IMF).

Sharif stated, “The intention is to assure openness, accelerate processes, and cultivate a pro-business atmosphere. These modifications are crucial for economic advancement and worldwide trustworthiness, not just aesthetic improvements.” The reforms involve comprehensive digitization of customs procedures, thereby eliminating human discretion in valuations and inspections—a practice that has long faced criticism from exporters and importers for being opaque and exploitative.

AI-Powered Customs Clearance System

Authorities briefed the Prime Minister that systems for risk assessment driven by artificial intelligence and screenings utilizing scanners are already being used to expedite customs clearances.

These modifications seek to confront established corruption within the nation’s cross-border commerce, wherein actual inspections and arbitrary tax evaluations have enabled extensive corruption by officials.

According to a World Bank report from 2024, inefficiencies and dishonest practices in Pakistan’s customs procedures impose a yearly cost of approximately $1.2 billion on the economy due to missed trade opportunities and delayed shipments.

During the briefing, authorities noted that the updated system would feature impartial oversight of challenges to customs valuations—a measure that has been well-received by segments of the business sector. Sharif remarked, “Challenges must be equitable and self-governing. Individuals should not fear consequences for contesting a decision.”

The Prime Minister also directed port officials to execute a cohesive strategy for cargo movement to avert bottlenecks and guarantee the efficient dispatch of commodities.

Officials stated that heightened surveillance and recent operations to combat smuggling have already resulted in an upswing in goods being processed via lawful channels.

The country’s economic state remains unsteady after a year marked by unparalleled inflation and inconsistencies in foreign exchange rates. Although the nation narrowly averted default in 2024, it is still under strict surveillance by global creditors. Adjustments in revenue acquisition and trade facilitation are vital to the government’s blueprint for economic rejuvenation.

Sharif emphasized, “Enhancing the ease of conducting business and encouraging investment are among the government’s chief objectives. These adjustments will convey a definite message: Pakistan welcomes commerce and is earnest about change.”

The assembly included the participation of Finance Minister Muhammad Aurangzeb, Minister for Climate Change Musadik Malik, Information Minister Attaulalh Tarar, Minister for Economic Affairs Ahad Cheema, State Minister for Finance Bilal Kiyani, along with other high-ranking officials.