akistan is at a critical juncture in its struggle against pervasive tobacco consumption. Nearly 20 percent of its adult population — approximately 31.6 million people – are addicted to tobacco products that kills about 160,000 people annually. Besides, tobacco use exacts a significant economic toll, draining an estimated 1.4 percent of Pakistan’s GDP in healthcare expenditure.

Recent initiatives offer a glimmer of hope, signalling a concerted effort to realign tax policies with global standards, particularly those advocated by the World Health Organisation.

The Global Tobacco Index shows that the nation falls short of the WHO’s recommended threshold for tobacco excise duties that should ideally constitute 70 percent of the retail price.

Multinational cigarette companies have a long history of lobbying for tax policies that suit their interests. The Global Tobacco Industry Interference Index 2023 ranks Pakistan 32^nd, highlighting persistent challenges posed by industry interference, which hinders effective policy reform.

Pakistan’s tobacco tax rate is currently at 61 percent of the retail price. The global benchmark is 70 percent. This underscores the urgent need to bridge this gap and align Pakistan’s tobacco taxation policies with international standards.

The cigarettes industry claims that tax raises lead to more illicit trade and job losses, but these claims are baseless and aimed at delaying and undermining tobacco control measures. Instead tax raises will generate significant revenue for the government. Higher taxes will also reduce tobacco consumption, leading to a decrease in tobacco-related deaths and diseases.

The World Bank estimates that a 10 percent increase in tobacco taxes can lead to a 5 percent reduction in tobacco consumption.

The federal excise duty share in retail prices is currently 48 percent and 68 percent for low and high tiers, respectively, following increases in 2022-23. Pakistan has been a signatory to the WHO Framework Convention on Tobacco Control since 2005. Progress in enforcing tobacco control measures has been laudable but insufficient. The imperative to redouble enforcement efforts and bolster tobacco tax reforms cannot be overstated.

As Pakistan charts its course forward, the imperative to prioritise public health and fiscal stability looms large. The upcoming budget deliberations present a pivotal opportunity to advance this agenda, with proposals to significantly augment tobacco taxes poised to fortify public health infrastructure and propel smoking cessation initiatives.

As Pakistan charts its course forward, the imperative to prioritise public health and fiscal stability looms large. The upcoming budget deliberations present a pivotal opportunity to advance this agenda. 

To navigate these challenges, Pakistan must restrict the influence of multinational tobacco conglomerates, which continue to hold sway through lobbying efforts and exaggerated claims of illicit trade. By adopting evidence-based policy reforms and steadfastly adhering to WHO recommendations and IMF guidelines, Pakistan can forge a path towards a healthier future for its citizens.

By heeding the imperative and rallying behind evidence-backed interventions, Pakistan can carve out a brighter tomorrow—one where the scourge of tobacco is consigned to the annals of history.

The government must take decisive action to prioritise public health over industry interests. The current tax rate is insufficient and the tax structure is complex. Tiers and exemptions undermine its effectiveness. The influence exercised by the tobacco industry is a significant obstacle to effective tobacco control. It is essential to expose and counter its tactics.

The government must raise tobacco taxes significantly and implement other evidence-based tobacco control measures. This will generate significant revenue for the government, reduce tobacco consumption and lead to a decrease in tobacco-related deaths and diseases.

The benefits of increasing tobacco taxes are well-documented. In addition to reducing tobacco consumption, higher taxes can generate significant revenue for the government, which can be used to fund healthcare and other public services. Moreover, higher tobacco taxes can help reduce the economic burden of tobacco consumption, which currently drains an estimated 1.4 percent of Pakistan’s GDP.

Tobacco tax reform can also shelp address the significant health disparities in Pakistan. Tobacco consumption is a major risk factor for non-communicable diseases, which account for a significant proportion of deaths in Pakistan. By reducing tobacco consumption, Pakistan can make significant strides in reducing the burden of NCDs and improving overall public health.

Raising tobacco taxes is the most effective way to reduce tobacco consumption. The government must prioritise public health over industry interests and take decisive action.

The writer is an Islamabad-based researcher and journalist