In a shocking revelation, the Institute for Public Opinion and Research (IPOR) has highlighted the massive scale of illegal cigarette sales in Pakistan, exposing critical enforcement failures in the tobacco industry. Unveiled during a press conference in Lahore, the report underscores how over 54% of cigarette brands violate national laws, especially concerning Graphical Health Warnings (GHWs) and the Track and Trace System (TTS).
Widespread Violations Despite Existing Legislation
Tariq Junaid, Executive Director of IPOR, revealed that despite the enforcement of GHWs in 2009 and TTS in 2022, compliance remains dangerously low:
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286 brands are openly sold without graphical health warnings
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Only 19 out of 413 cigarette brands are compliant with TTS
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394 brands lack required tax stamps
The study, based on a survey of 1,520 retail outlets across 19 districts, found that 332 brands are being sold below the legal minimum price of Rs162.25, with some priced as low as Rs40 — indicating rampant tax evasion and illegal trade.
Massive Revenue Losses and Public Health Concerns
According to IPOR’s findings:
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55% of illicit cigarettes are produced locally without paying taxes
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45% are smuggled into Pakistan
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The estimated annual loss to the national exchequer exceeds Rs300 billion
This uncontrolled spread of illegal cigarette brands not only undermines public health policies but also creates unfair competition for legitimate businesses and drains national revenue.
Why the System Is Failing
Junaid explained that every increase in tobacco taxes, without enforcement, benefits illegal manufacturers and smugglers, as consumers turn to cheaper, unregulated brands. He criticized the government’s lack of action:
“This is not just a regulatory failure — it’s a legal and economic crisis,” he emphasized.
Recommendations for Immediate Action
To combat the illegal cigarette trade, IPOR calls on the government to:
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Intensify monitoring of retail shops nationwide
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Ensure full enforcement of TTS and GHWs across all manufacturers
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Crack down on the illicit trade through coordinated, nationwide efforts
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Penalize non-compliant brands to restore public trust and market balance
These steps, Junaid asserted, are vital to protect national revenue, ensure public health, and safeguard law-abiding businesses.
