Non-duty-paid cigarettes, illegal trade networks: FBR, provinces intensify operations

KARACHI: The Federal Board of Revenue and provincial authorities have intensified nationwide operations against non-duty-paid cigarettes and illegal trade networks, leading to the seizure of illicit cigarettes and raw materials equivalent to nearly 17 billion cigarette sticks during 2025-26, representing nearly 40 percent of the total illicit cigarette market.

Following strategic guidance issued by Prime Minister Shehbaz Sharif to the FBR and provincial authorities had strengthened and accelerated action against non-duty-paid cigarettes and illegal trade activities across the country.

Philip Morris Pakistan Limited has appreciated recent nationwide enforcement actions against illicit cigarette trade, saying the crackdown would help protect Pakistan’s documented economy, improve revenue recovery, and ensure fair competition for tax-compliant businesses. Pakistan’s ongoing enforcement trajectory was consistent with practices adopted in several European markets, where sustained anti-illicit trade measures had yielded improved compliance and revenue recovery, it added.

The company said improved coordination between the FBR, Ministry of Finance, and provincial authorities had contributed to greater compliance within the tobacco sector. Illicit cigarette trade causes annual revenue losses of approximately Rs 300 billion to the national exchequer.

Marco Mariotti, President CIS and Central Asia at Philip Morris International, during his recent visit to Pakistan, stated that the recent enforcement measures led by FBR and provincial authorities reflect a strong institutional commitment toward addressing illicit trade and strengthening market compliance.

Sustained enforcement remains essential for improving revenue collection, transparency and supporting Pakistan’s broader economic objectives, he said.

He further commended the government’s persistent focus on formalizing the informal sector, enforcement priorities, and legal action against illicit trade, emphasizing that ongoing policy direction is vital for ensuring lasting progress against illicit trade.

The PMI reaffirmed its full support for continued collaboration between federal and provincial authorities to intensify enforcement against illicit trade and safeguard the formal economy.

Copyright Business Recorder, 2026