PESHAWAR: A special committee of the Khyber Pakhtunkhwa assembly has reviewed the issues faced by the tobacco sector, including growers and industries in the province and called for preparing of recommendations to frame comprehensive and practical policy in the purpose.
A meeting of the Special Committee on Calling Attention Notice No. 764 of the Khyber Pakhtunkhwa Assembly was held on Monday at the Provincial Assembly Secretariat.
The meeting was chaired by Chairman of the Special Committee and Member of the Provincial Assembly, Abdul Karim Tor Dher.
The meeting was attended by Minister for Law Aftab Alam, Minister for Excise and Taxation Fakhar Jahan, Minister for Labour Faisal Khan Tarakai, Members of the Provincial Assembly Rangeez Khan, Arbab Muhammad Usman, Abdul Kabir Khan, and Munir Hussain Laghmani, along with officials from the Law Department, Kisan Board, Pakistan Tobacco Board, representatives of industrialists, and relevant officers of the Provincial Assembly Secretariat.
During the meeting, detailed deliberations were held on Calling Attention Notice No. 764, which had been moved by MPA Abdul Karim Khan.
He stated that Khyber Pakhtunkhwa produces approximately 98 percent of the country’s tobacco, yet the province and local farmers are not receiving adequate economic benefits from this production.
He further said that major tobacco-purchasing companies are establishing cigarette manufacturing factories in other provinces, resulting in rising unemployment and economic difficulties in Khyber Pakhtunkhwa.
Representatives of the industrial sector informed the committee that increasing taxes on the tobacco industry have placed the sector under severe pressure, leading to the closure of several factories in the province.
On the other hand, representatives of the Kisan Board told the committee that cigarette manufacturing companies are exploiting farmers.
According to them, companies purchase only a limited quantity of tobacco at the government-fixed rate, while the remaining tobacco is bought from farmers at extremely low prices under the “surplus rate” system, which is unfair to farmers.
The meeting was informed that tobacco exports have increased by 645 percent over the past ten years, while the highest tobacco production in the province comes from the districts of Swabi, Mardan, Buner, Mansehra, and Charsadda.
Representatives of tobacco-purchasing companies requested that no new provincial taxes be imposed, stating that the tobacco industry in the province is already in a deteriorating condition and that additional taxes would further weaken the sector.
They also highlighted the financial challenges faced by the industry and the potential negative impact on employment.
At the conclusion of the meeting, Chairman of the Special Committee Abdul Karim Khan directed the relevant departments to prepare comprehensive recommendations on the matter and ensure the participation of all concerned institutions, particularly the Pakistan Tobacco Board and FBR representatives, in the next meeting.
He stated that this was the first meeting of its kind in which representatives from all sectors associated with the tobacco industry were brought together on one platform.
He added that, in light of all recommendations and opinions, a comprehensive and practical policy would be formulated that would not only contribute to the province’s economic development but also help address unemployment.
Copyright Business Recorder, 2026
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