FTT Urges Crackdown on Cigarette Smuggling, Labels Illicit Trade a ‘Systematic Economic Crime’

Islamabad — The Fair Trade in Tobacco (FTT) has called on the Government of Pakistan to intensify its crackdown on the illicit cigarette trade, warning that tax evasion in the sector is costing the national economy nearly Rs. 400 billion annually. The appeal was made during a high-level seminar held in Islamabad, where FTT Chairman Ameen Virk praised recent enforcement efforts but stressed the need for sustained and institutionalized action.

“The illegal cigarette trade is not a minor tax leakage—it is a structural crisis that undermines national development,” Virk stated in his address to media professionals, economic analysts, and civil society leaders. “Every rupee lost to tax evasion is a rupee denied to infrastructure, healthcare, and education.”

Virk welcomed recent actions by the Federal Board of Revenue (FBR), customs intelligence, and the Inland Revenue Enforcement Network, noting their success in seizing non-compliant brands and exposing tax-evading manufacturers. However, he warned against complacency, insisting that enforcement must be ongoing and relentless.

“These criminal networks do not pause, and neither should the state,” he said, urging that “one successful raid must lead to ten more.”

FTT expressed concern that, despite existing regulations, over 40 illicit cigarette manufacturers continue to operate with impunity, openly flouting tax laws and public health regulations. These companies reportedly violate the Track and Trace System, sell below the Minimum Legal Price, and fail to include required Graphical Health Warnings on their packaging.

“It is alarming that while legal tobacco companies contribute nearly Rs. 300 billion in taxes, illicit operators continue to profit without fulfilling any fiscal or regulatory obligations,” Virk said. “Their actions are not just criminal—they are a direct threat to national governance and public health.”

Linking tax evasion in the tobacco industry to broader economic stagnation, Virk underscored that addressing the issue could significantly bolster Pakistan’s development budget. “Recovering even half the annual losses could fund new hospitals, schools, and infrastructure projects,” he said. “This is about more than revenue—it is about national priorities.”

Read more: The Cigarette Cartel: Politicians, Tobacco Tycoons, and NGOs — A Conspiracy or a Crisis in Public Health?

The seminar concluded with a unified call for policy coherence and stronger institutional support. FTT urged the government to empower enforcement agencies with the legal authority, financial backing, and political will needed to dismantle smuggling and tax evasion networks comprehensively.

“We stand with the government and the FBR,” Virk concluded. “But we also demand consistency, accountability, and results. The illegal cigarette trade is not just an economic issue—it is an attack on Pakistan’s regulatory authority and institutional credibility.”