Illicit cigarette trade: PMPKL urges authorities to take targeted enforcement steps

ISLAMABAD: Philip Morris (Pakistan) Limited (PMPKL) has urged authorities to take targeted enforcement measures at the retail and distribution levels to curb the growing illicit cigarette trade, which continues to drain Pakistan’s economy and undermine legal businesses.

Speaking to a group of journalists, Khurram Qamar, Director External Affairs at PMPKL, said that illegal cigarettes now account for more than 57 percent of Pakistan’s cigarette market, creating an uneven playing field that severely disadvantages compliant manufacturers while eroding the integrity of the industry.

Khurram emphasized on how enforcement needs to be carried out in a focused manner for it to have a lasting impact. Conducting multiple raids in spread out areas leaves illicit manufacturers unaffected. Instead, the need of the hour is for enforcement to be targeted to selected areas and retailers.

“Enforcement carried out in this manner would lead to illicit being eradicated from these areas and would have a greater impact on not just the retailers who sell illicit but the manufacturers aswell,” explained Khurram.

He stressed upon the need for raids to be amplified so that retailers across the country understand the repercussions on stocking and retailing illicit cigarettes. Khurram pointed how “the sale of illicit cigarettes has become normalized where retailers have no reservations in stocking cigarettes without graphical health warning and Track & Trace – this normalization of a criminal activity and violation needs to be curtailed.”

“This is not just a challenge for PMPKL, it is a national economic issue,” said Khurram adding that Illicit trade drains over Rs310 billion (around $1 billion) annually, revenue that could fund human development projects but instead empowers tax-evading operators who sell below minimum pricing and ignore health warnings. Despite these challenges, PMPKL continues to be a major contributor to Pakistan’s formal economy. Out of 52 tobacco companies operating in the country, only two legal players, including PMPKL, account for nearly 98 percent of total tobacco tax revenues.

Khurram also welcomed the government’s Track & Trace system but stressed that its implementation in letter and spirit remains long overdue. He said that PMPKL was among the first companies to fully install and implement the system across its operations, yet broader enforcement among tobacco companies is still lacking. PMPKL reiterated its commitment to working with the government and stakeholders to combat illicit trade.

“Only strong and sustained enforcement against non-compliant distributors and retailers can restore market balance, safeguard billions in lost revenue, and strengthen Pakistan’s economic future,” he added.

Copyright Business Recorder, 2025