ISLAMABAD: The sales of smuggled and non-duty paid illicit cigarettes has manifold increased in Pakistan, as over 54 percent of cigarette brands available in markets are non-compliant.
A new study released by Institute for Public Opinion Research (IPOR) uncovered a concerning lack of compliance with tobacco control regulations in Pakistan.
The report was launched on Friday by Tariq Junaid, Executive Director IPOR.
Among these non-compliant brands, 45% were smuggled brands, while 55% were locally manufactured duty not paid brands.
The study, which surveyed 1,520 retail outlets across 19 districts, identified over 413 cigarette brands available in Pakistan. Among these, only 19 brands were fully compliant with the Track and Trace System (TTS), 13 were partially compliant, 95 featured the Graphical Health Warning (GHW), and 286 lacked both the tax stamp and the GHW. Although the mandatory implementation of GHWs was introduced in 2009, even after 16 years, cigarette packs without the required larger warnings continue to be sold without any government enforcement.
The study also revealed that compliance with the TTS, introduced in 2021 as a key measure to curb illicit cigarette trade, remains highly inadequate. Additionally, the study found that 332 brands were being sold below the legal minimum price of Rs 162.25, with some available for as little as Rs 40. This rampant violation of minimum price results in significant revenue losses for the government.
Junaid said that there is a lack of enforcement across the country. Apparently, shopkeepers are selling illicit cigarettes without any fear of raids or checking. The high prevalence of non-compliant and smuggled cigarettes deprives the government of much-needed revenue.
The situation needs immediate redressal to curb this revenue loss through strict point of sale enforcement he added.
The study found that non-compliance was more prevalent in rural areas (58%) compared to urban areas (49%). This underscores the need for targeted enforcement efforts in rural markets where illicit products are more prevalent.
Copyright Business Recorder, 2025
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