ISLAMABAD: Philip Morris Pakistan has called on authorities to intensify targeted enforcement at the retail and distribution levels to curb the surge in illicit cigarette sales, which the company says is costing the exchequer around $1 billion annually.
“Illegal cigarettes now account for more than 57 per cent of Pakistan’s cigarette market, creating an uneven playing field that disadvantages compliant manufacturers and undermines the integrity of the industry,” remarked Khurram Qamar, director of external affairs at Philip Morris Pakistan Limited (PMPKL), while speaking to reporters on Tuesday.
He argued that enforcement efforts should be concentrated rather than dispersed. “Multiple raids in scattered areas leave illicit manufacturers unaffected. Instead, targeted enforcement in specific markets would not only deter retailers but also impact manufacturers,” he explained.
Khurram added that raids must be stepped up nationwide so that retailers understand the risks of stocking illegal products. “The sale of illicit cigarettes has become normalised, with retailers openly offering packs without graphical health warnings or ‘track and trace’ codes. This normalisation of criminal activity must be curtailed.”
Highlighting the broader impact, he said illicit trade drains over Rs310 billion annually, depriving the government of revenues that could otherwise fund human development projects. Of the 52 tobacco companies operating in Pakistan, only two — including PMPKL — account for nearly 98 per cent of tobacco tax revenues.
Khurram welcomed the government’s track and trace system but said its implementation “in letter and spirit” remains incomplete. PMPKL was among the first to fully adopt the system, yet wider compliance and enforcement are still lacking.
“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 concluded.
