AN ANALYSIS OF THE CHALLENGES FACED BY CUSTOMS FOR TRADE FACILITATION IN PAKISTAN

Abstract

Trade facilitation is essential for improving international competitiveness and economic growth in developing countries. This study analyzes the key challenges faced by Pakistan Customs in advancing trade facilitation, focusing on automation, risk management, inter-agency coordination, and tariff classification. Using a qualitative analysis on secondary data, recent field evidence, and a thematic literature review, the research applies the Resource-Based View Model, Technology Acceptance Model, and Heckscher-Ohlin theory to interpret customs modernization outcomes in Pakistan. Findings reveal that automation through WeBOC and the Pakistan Single Window (PSW) has reduced clearance times and improved transparency at major seaports but that dry ports and land borders continue to face delays, frequent manual overrides, and infrastructure gaps. Risk management systems remain underutilized, with manual inspections and limited post-clearance audit capacity prevailing across most points of entry. Inter-agency coordination is incomplete, leading to redundant procedures and inconsistent integration of government agencies into digital platforms. Persistent disparities in tariff classification and valuation, especially at smaller and up-country ports, further impede trade efficiency and disproportionately affect SMEs. The study recommends targeted investments in digital infrastructure, expanded training, comprehensive onboarding of all regulatory agencies into the PSW, and accelerated rollout of automated risk management and dispute resolution processes. Addressing these institutional, technological, and human resource bottlenecks will be critical to aligning Pakistan’s customs operations with global best practices and unlocking the country’s export competitiveness.