Abdul Ghani

The implementation of the Faceless Customs Assessment (FCA) regime has yielded remarkable results at Karachi’s Appraisement South. Total revenue collection surged by 50% year-on-year, reaching Rs342.5 billion in July 2025, up from Rs227.9 billion in the same month last year. According to documents available with WealthPK, customs duty collections alone rose by 47%, from Rs63.6 billion in July 2024 to Rs93.8 billion in July 2025, signalling improved compliance, reduced under-invoicing, and greater transparency in the clearance process.

A senior customs official attributed this sharp rise in revenue to key structural reforms introduced under FCA, which include extended operational hours, centralised assessments, virtual reviews, digitised examination protocols, and tighter oversight on lab referrals.

“The results speak for themselves. This is not just a digital shift, it is a fiscal success story,” said chief collector Jamil Nasir Khan, who has been spearheading the appraisement and FCA reforms since late 2024. He told WealthPK that the Customs Appraisement Unit (CAU) in Karachi is now operational from 8:00 a.m. to midnight, enabling the daily clearance of 1,500 to 2,000 goods declarations (GDs).

“Over 95% of GDs are assessed on the same day,” said Nasir Khan.

The 50% growth in total revenue highlights not only increased efficiency and transparency but also a strong case for scaling up FCA nationwide. The dramatic rise contradicts early criticisms that the system could cause delays or revenue losses.

“Revenue growth of this magnitude in just one year confirms the credibility of FCA,” said a senior customs analyst. “It shows that digital governance can deliver not only transparency but tangible financial gains.”

Further facilitation is expected with upcoming initiatives such as direct port delivery (DPD) and decoupling of payment from GD filing, which aim to reduce port congestion and ease liquidity constraints for importers.

It is worth mentioning that the launch of the FCA system as part of the government’s Tax Transformation Plan is a significant reform that makes use of technology to maintain anonymity in the customs process to determine taxes on import shipments. The initiative was launched in December 2024 at the Karachi Port, which handles the bulk of imports before their transportation to the rest of the country.

The project involves relocating customs appraisement functions outside the customs collectorates. Under the initiative, a goods declaration or bill of entry submitted by an importer or their agent is randomly assigned to an assessing officer, who is physically located at a customs station, which is not the port of import in the automated system, for appraisal of duties and taxes.

Credit: INP-WealthPk