Pakistan Customs : Mobilizing Domestic Revenues for Economic Development

The government depends on the ability of Pakistan Customs to play a significant role in mobilizing domestic revenues, which contribute to the country’s economic development. However, the predominant focus on the agency’s revenue objective appears to constrain its utilization of facilitation measures that are necessary to expand trade and help the country develop. This Governance Note explores pathways Pakistan Customs may take to facilitate trade without compromising its collection of payable duties and taxes. It proposes three reform options for consideration: enhancing the risk management system; improving pre- and post-clearance facilities; and contributing to the broadening of the tax base. Taken together, implementing these reforms could accelerate the advancement of Pakistan Customs, building on its relatively strong cargo management and revenue control capabilities.