Pakistan eyes 12-hour customs clearance as maritime reforms advance

ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday said reforms introduced under the Prime Minister’s Maritime Task Force had significantly improved customs efficiency, boosted revenue collection, curbed smuggling and reduced cargo clearance times, with the government now aiming to bring average customs clearance down to 12 hours.

Addressing a joint press conference alongside Chairman of the Prime Minister’s Maritime Task Force Iftikhar Rao and Secretary Maritime Affairs Nadeem Mahbub, FBR Member Customs Syed Shakeel Shah said the task force had identified key structural bottlenecks in the maritime sector and ensured their swift resolution through coordinated implementation.

Shah said one of the most significant reforms was the introduction of the faceless customs assessment system at ports, which eliminated direct interaction between customs officials and importers, improved transparency and enhanced compliance.

“The average revenue per Goods Declaration (GD) has increased from Rs6.8 million to approximately Rs7.7 million, reflecting a 16% increase,” he said.

He added that import-related tax collection had grown by 14%, with 8 percentage points attributed to improved enforcement and compliance, while the remaining 6 percentage points resulted from higher import volumes.

Highlighting improvements in port operations, Shah said average customs clearance time had already been reduced from 53 hours to 18 hours since the task force was established.

“Our next target is to reduce customs dwell time to 12 hours over the next one to two years, bringing Pakistan below international benchmarks,” he said.

The FBR official said the task force had also enabled Pakistan’s entry into the ship bunkering business by facilitating the formulation and notification of comprehensive bunkering regulations.

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He said international operators were planning fuel supply operations at Karachi and Gwadar ports, which would attract larger vessels and increase maritime commercial activity.

Shah added that dredging work had begun at both major ports to enable them to accommodate larger ships, a key step toward establishing Pakistan as a regional transshipment and logistics hub.

He further announced that customs duties and sales tax on vessels and shipbuilding had been abolished to encourage investment in the maritime sector.

The task force, he said, had also streamlined cargo handling at Azakhel Dry Port, introduced faceless customs assessment there and curbed the misuse of cargo clearance procedures.

Shah said work was progressing on Digital Enforcement Stations under the FBR’s transformation programme to facilitate legitimate trade while using risk-based targeting to intercept smuggled and tax-evaded goods without disrupting lawful commerce.

According to the FBR, enforcement measures have led to a sharp rise in legal imports, with tyre imports increasing by 42%, fabrics by 41%, toiletries by 75% and electronics by 105%, indicating a significant decline in illicit trade.

“The success against tyre smuggling has restored investor confidence, making local investment in tyre manufacturing commercially viable,” Shah said.

He added that freight forwarding agents were being brought under an automated registration regime through the Pakistan Single Window (PSW), while the licensing examination for customs agents had been outsourced to the Institute of Business Administration (IBA), Karachi, to ensure transparency and professional standards.

A new point-based accountability system has also been introduced for customs agents to improve the quality of customs declarations, he said.

Among upcoming reforms, Shah said the FBR planned to expand the use of advance filing of Goods Declarations (GDs), allowing importers to complete customs formalities before cargo arrives in Pakistan, thereby reducing congestion and expediting cargo clearance.

He said advance declarations currently account for around 8% of imports, with the target of raising the figure to more than 50% during the current fiscal year.

Shah also said customs operations at ports were being expanded towards 24-hour operations through fresh recruitment to ensure uninterrupted cargo clearance.

He added that the Pakistan Single Window-based Port Community System was being rolled out to digitally integrate customs authorities, regulators, ports, terminal operators, banks and logistics providers, enabling traders to complete documentation and payments online without visiting government offices.

The FBR is also modernising its 14-year-old WeBOC customs system under a comprehensive technology upgrade recommended by the task force. Major modules are expected to be rolled out during the current fiscal year, with full implementation targeted by June 2028.