Illegal tobacco costs Rs300b yearly

ACT Alliance Pakistan Country Director Mubashir Akram has said the illegal tobacco industry steals more than Rs300 billion from Pakistan's tax revenue every year, and the actual scale of the illicit trade may be three to four times larger when including manufacturing, transport, warehousing and retail networks.

Speaking to reporters, Akram appreciated the government's recent enforcement actions against illegal cigarette manufacturing, smuggled brands and Track and Trace violations, calling it essential for protecting the revenue base and formal businesses.

He warned that those involved in the illegal trade may attempt to use influence against FBR officials to stall operations. "If illegal operators succeed in pressuring the system, it will damage Pakistan's reputation before those responsible for bringing foreign direct investment," he said.

Akram said investors watch whether the state protects compliant businesses. He urged the government to provide full institutional backing to enforcement personnel, calling them defenders of Pakistan's economic sovereignty. He stressed that consistent action across the illegal economy could add tens of billions of dollars to national tax revenue over time.