ACT Alliance Urges Prosecution After FBR Raids on Illegal Cigarette Networks

ISLAMABAD: (Finance Reporter) – ACT Alliance Pakistan has welcomed the Federal Board of Revenue’s (FBR) stepped-up enforcement against illegal cigarette manufacturing and distribution networks, calling for stronger investigations, timely prosecutions and penalties against those found guilty.

Mubashir Akram, Country Director of ACT Alliance, said the organisation appreciated the government’s efforts to tackle illegal trade, smuggling, counterfeiting and tax evasion. He also commended Prime Minister Shehbaz Sharif’s leadership and urged continued support for FBR enforcement teams.

“We appreciate the Prime Minister’s leadership and the government’s commitment to addressing the illegal cigarette trade and other criminal business networks,” Akram said, adding that sustained enforcement was needed to prevent illegal operators from re-establishing their presence in the market.

According to ACT Alliance’s review of publicly available reports covering January 1 to August 31, 2026, the FBR’s Inland Revenue Enforcement Network recorded 675 raids involving tobacco-related activities, including cases concerning raw tobacco.

The review also identified at least four separately reported registered cases relating to cigarette manufacturing, machinery violations or restricted manufacturing inputs. ACT Alliance clarified that these figures do not represent a complete national tally of criminal cases and that the number of raids should not be confused with prosecutions.

The organisation said its review found no publicly confirmed completed prosecutions resulting in convictions and punishments within the sources examined.

“The next area for improvement concerns what follows a raid,” Akram said. “Seizures and confiscations should be supported by thorough investigations, timely prosecutions, and penalties wherever due process establishes violations.”

Illegal cigarette trade raises economic concerns

ACT Alliance said illegal cigarette sales posed challenges for government revenue, lawful businesses and fair competition. Industry estimates cited by the organisation suggest Pakistan’s annual cigarette market exceeds 80 billion sticks, with more than half sold through illegal channels.

The organisation argued that illegal trade and tax evasion undermine compliant manufacturers by allowing unlawful operators to compete without meeting the same regulatory and tax obligations.

Akram said fair competition was important for investor confidence, warning that illegal business activity could discourage existing investors from expanding and deter prospective investors from committing funds to Pakistan.

“Illegal trade and tax evasion must therefore be addressed as national economic challenges, not merely sector-specific violations,” he said.

ACT Alliance calls for stronger legal follow-through

ACT Alliance urged the authorities to improve coordination between investigators and prosecutors, ensure the secure custody and transparent disposal of seized goods, and preserve evidence throughout legal proceedings.

It also called for regular monitoring of registered cases from investigation through prosecution and final adjudication, alongside efforts to identify the organisers and financiers of illegal cigarette operations where evidence supports their involvement.

Akram said strengthening investigative and prosecutorial capacity would help translate enforcement activity into lasting deterrence and improve compliance with the law.

The organisation further urged authorities to review pending cases, address avoidable procedural delays and pursue alleged offenders in accordance with applicable laws and due process.

“Pending cases should be thoroughly investigated, those responsible prosecuted, and persons found guilty penalized according to the law,” Akram said.

ACT Alliance maintained that sustained enforcement and effective legal action against proven violations were important for protecting public revenue, supporting lawful businesses and strengthening Pakistan’s formal economy.