ISLAMABAD
\nPakistan Tobacco Company (PTC) on Thursday expressed serious concern over the increasing illegal trade of cigarettes in the country that caused a severe dent to the industry bringing its sales down by 11.26 percent in the first quarter of the current fiscal year as compared to 2023-24.
\n\u201cThe legitimate tobacco industry in Pakistan faces continued challenges as illicit cigarette sales have reached alarming levels,\u201d PTC\u2019s Senior Regulatory Affairs Manager, Qasim Tariq said in a media briefing here.
\nDuring the period under review, he said the company sold 6.3 billion cigarette sticks against 7.1 billion of the last year. With illicit cigarette sales reaching alarming levels, he said the PTC noted a staggering decrease of nearly 0.8 billion cigarette sticks for Q1 of the current fiscal year, compared to the same period in the previous year.
\nThis shortfall, the official said, reflected the heavy toll that illicit trade was taking on legitimate businesses and government revenues, which were essential for funding projects critical to Pakistan\u2019s growth. \u201cThe economic fallout from the rise of illicit cigarette sales is multifaceted,\u201d he added.
\nHe also mentioned the Federal Board of Revenue (FBR)\u2019s recent statement in the Senate Standing Committee which revealed 50 percent of cigarettes were being sold in Pakistan illegally.
\nIn February 2023, he said, an unprecedented Federal Excise Duty (FED) increase of more than 150% continued harming the legal sector as higher prices have inadvertently fuelled a shift from legal brands to cheaper, illegal alternatives.
\n \u201cAs a result, there is an estimated Rs 300 billion loss to government revenue which is essential for public services, infrastructure and economic development initiatives,\u201d he remarked.
\nHighlighting recent missed opportunities in the international market, Qasim Tariq, shared insights into a critical export loss for Pakistan. Earlier this year, he said that PTC secured an order to export cigarettes worth US $20.5 million to Sudan, a deal that would have provided Pakistan with invaluable foreign exchange.
\nHowever, Tariq said, despite support from the Special Investment Facilitation Council (SIFC) and endorsement from the prime minister, the deal was lost due to delays in decision-making by officials in the Ministry of Health and propaganda from certain anti-tobacco groups.
\nThe order was subsequently awarded to a neighbouring country, costing Pakistan not only an economic opportunity but also valuable foreign reserves that were crucial to the country\u2019s fiscal health during challenging economic times.
\n\u201cCertain clauses of the World Health Organization\u2019s Framework Convention on Tobacco Control (FCTC) were misinterpreted and used as the basis to challenge this export order,\u201d Tariq explained.
\n\u201cIronically, the neighbouring country that ultimately won the contract is also an FCTC signatory, like Pakistan and Sudan. This incident illustrates the harmful effects of misinformation and the economic harm that can arise from the unchecked influence of certain advocacy groups on public policy,\u201d he remarked.
\nPTC acknowledged and commended the Federal Board of Revenue (FBR) for its recent enforcement efforts against illicit tobacco trade; however, Tariq emphasised that isolated enforcement measures would not be enough to address the problem.
\nHe was of the view that the market for illicit products remained strong due to limited resources of the FBR, and inconsistent enforcement at the retail level, where illicit cigarettes are widely accessible.
\n\u201cPTC strongly advocates for the full and consistent implementation of a Track & Trace system in all regions, including Azad Jammu and Kashmir (AJK), to enable authorities to identify and monitor products, reduce tax evasion and ensure only legitimate products reach consumers,\u201d he said<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Pakistan Tobacco Company (PTC) on Thursday expressed serious concern over the increasing illegal trade of cigarettes in the country that caused a severe dent to the industry bringing its sales down by 11.26 percent in the first quarter of the current fiscal year as compared to 2023-24. \u201cThe legitimate tobacco industry in Pakistan faces […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-442304","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n