Pakistan’s ‘Faceless’ Customs System Fails, Costing State 100B Rupees

DID Press: Pakistan’s much-touted “faceless” customs system, launched last year to curb corruption, has backfired as new audit reports showing an estimated revenue loss of nearly 100 billion rupees in just past three months.

According to an internal audit, the “Faceless Customs Assessment” program—designed to digitize clearance procedures and reduce graft—has instead enabled widespread irregularities. Officials say the system has already inflicted around 100 billion rupees in lost revenues.

A review of just 2,530 declarations uncovered more than 5 billion rupees in tax evasion, the report noted. Cases included under-invoicing, money laundering and illegal clearance of goods.

One striking example cited was the release of a luxury car worth 10 million rupees that was cleared through customs at a declared value of only 17,000 rupees. In another case, dozens of containers of solar panels were reportedly imported using fake or unauthorized tax identification numbers.

Auditors also pointed to the system’s over-reliance on the “green channel” for automatic clearance, which has sharply reduced human oversight and widened the scope for abuse.

The report warned that without urgent reforms, not only will public trust in Pakistan’s customs regime erode, but the government’s anti-corruption drive can be seriously undermined.

The “faceless” clearance system was part of Islamabad’s wider push to digitize trade and streamline bureaucracy. But critics say its rushed rollout and lack of adequate monitoring have led to opposite effect.