Islamabad
ACT Alliance Pakistan has alleged that a highly organized network involved in the smuggling of Afghan-linked cigarette brands into Pakistan is causing billions of rupees in annual tax losses and poses a serious threat to the country’s economy and national security.
In a press release, the organization claimed that Milano and Mond, two of the most widely smuggled cigarette brands in Pakistan, are allegedly manufactured by Gulbahar Tobacco Company, which it said is owned by the Habibi family of Jalalabad, Afghanistan. It further alleged that the company currently operates cigarette manufacturing facilities in Dubai and Russia.
According to ACT Alliance Pakistan, the Gulbahar Group has an extensive business network spanning Afghanistan, the United Arab Emirates, Europe, the United Kingdom, Russia and Pakistan, with interests in cigarette manufacturing, trading, investments, hospitality, real estate, cement, energy, hydropower and major infrastructure projects.
The organization alleged that Milano and Mond cigarettes are smuggled from Afghanistan into Balochistan through mountainous routes before being distributed to major cities and retail markets across Pakistan through a sophisticated logistics network. It further claimed that the cigarettes are sometimes transported under the cover of energy drinks and other legitimate goods to evade detection.
ACT Alliance Pakistan also alleged that several organized groups are involved in the smuggling network and that proceeds from the illegal cigarette trade are transferred to Afghanistan through money-laundering channels, resulting in billions of rupees in losses to the national exchequer every month.
According to the organization, the alleged proceeds are invested by the Gulbahar Group in major development projects across Afghanistan, including Gulbahar Tobacco, Gulbahar Trading, Gulbahar Hotel, Gulbahar Investment, Gulbahar Petroleum LPG Company and Adri International Tobacco. It further claimed that the group is investing in Afghanistan’s cement industry, dam construction, hydropower, petroleum transportation and real estate sectors, including an estimated US$8 billion, 11,000-acre residential and commercial project in Kabul, a US$142 million cement plant in Herat and a US$500 million hydropower project in Parwan Province.
The press release also alleged that the group provides financial and technical support to projects associated with the Afghan military.
ACT Alliance Pakistan warned that such an extensive alleged smuggling infrastructure could potentially be exploited for espionage, terrorism, illicit financial activities and other anti-state operations. It urged federal and provincial law enforcement agencies, Pakistan Customs, the Federal Board of Revenue (FBR) and other relevant authorities to conduct a comprehensive investigation into the alleged network, dismantle money-laundering channels and take indiscriminate action against all those involved in the nationwide distribution of smuggled cigarettes.
