ACT Alliance Pakistan Raises Alarm Over Conflict of Interest in Senate Sub-Committee on Illegal Tobacco Trade

“This is not about personal allegations or political rivalries,” Akram added.

By DTD- On Jun 23, 2025

Islamabad – June 23, 2025: ACT Alliance Pakistan, a prominent civil society platform advocating for economic fairness and transparency, has formally raised concerns regarding potential conflicts of interest within a recently constituted Senate Sub-Committee tasked with investigating the illegal tobacco trade.

According to emerging media reports, two out of three members of the Sub-Committee may have direct commercial affiliations with the tobacco industry or close family links to it. The Sub-Committee was formed under the Senate Standing Committee on Commerce on May 6, 2025, with the objective of addressing the illicit trade in cigarettes—a sector that reportedly causes an annual loss of over Rs. 300 billion to the national exchequer.

“We commend the Senate for addressing the illegal tobacco trade, which is a serious economic and public health issue,” said Mubashir Akram, National Convenor of ACT Alliance Pakistan. “However, recent reports about possible conflicts of interest within the Sub-Committee are deeply troubling. If individuals with close ties to the tobacco industry are involved in shaping oversight on illegal trade, this raises serious concerns about neutrality and credibility.”

The market share of illegal cigarettes in Pakistan has surged to 56%, placing legal and tax-compliant businesses at a disadvantage. ACT Alliance emphasized that the effectiveness of any parliamentary oversight depends on the impartiality of those leading it.

“This is not about personal allegations or political rivalries,” Akram added. “It’s about preserving the institutional integrity of parliamentary processes. If we are truly committed to tackling tax evasion and illicit trade, we must start with governance structures that are free from any form of undue influence.”

Akram urged the Senate Chairman and Secretariat to immediately review the composition of the Sub-Committee and reconstitute it if necessary to ensure unbiased proceedings. “The public must have confidence that those investigating a multi-billion-rupee illegal industry are not, directly or indirectly, linked to it,” he said.

ACT Alliance Pakistan has long supported the Federal Board of Revenue (FBR) and other institutions in their efforts to modernize tax systems and combat shadow economies. The group reiterated its call for year-round enforcement and structural reforms to dismantle illegal trade networks that drain public revenue.

“The stakes are high,” Akram concluded. “Illegal trade not only harms the economy but also weakens rule of law. The Senate has taken a step in the right direction, but it must now ensure its processes remain above reproach.”