Smoking costs Pakistan $2.5b annually

Tobacco costs Pakistan 164,000 lives and $2.5 billion annually — urgent tax increases can save lives and generate revenues.

In a statement, the World Health Organization (WHO) noted that the country loses Rs700 billion — approximately $2.5 billion — annually due to the devastating impacts of tobacco on public health. It called for urgent measures including increased taxation to save lives. It said all tobacco products on the market, without exception and regardless of its manufacturer, are extremely harmful to health and pose a major risk to vulnerable populations such as children and teenagers.

"As World No Tobacco Day — observed on 31 May — approaches, WHO reaffirms its commitment to partnering with Pakistan to address the chronic health crisis caused by tobacco," it said.

It said taxation must be used as a tool to reduce tobacco consumption. Taxation can also increase revenues that can be directed towards health and development priorities.

Without additional measures, the harmful impact of tobacco on public health and the national economy will continue to jeopardize Pakistan's efforts to advance the 2030 Agenda with regard to achieving the Sustainable Development Goals (SDGs).

It said research has shown that tobacco taxation is effective in increasing revenues for the government while also reducing consumption, tobacco-related diseases and pressure on health systems.

"In 2023, following a tax increase on tobacco products in Pakistan, tobacco use declined by 19.2%, with 26.3% of smokers cutting down on cigarette consumption. Revenue collection from the Federal Excise Duty (FED) on cigarettes increased by 66%, from Rs142 billion in 2022-23 to Rs237 billion in 2023-24."