IPOR Report Flags Weak Tobacco Track Trace Enforcement

Islamabad, (Mudassar Ch/ Web Desk)- The Institute for Public Opinion Research (IPOR) has released its second research report on the implementation of the Track and Trace System (TTS) in Pakistan’s tobacco industry, highlighting serious gaps in enforcement by the Federal Board of Revenue (FBR).

The report was launched during a policy dialogue held in Islamabad on Saturday, with Minister of State for Finance and Railways and Head of the Prime Minister’s Delivery Unit, Bilal Azhar Kiyani, as the chief guest.

The event was attended by policymakers, economists, representatives of regulatory authorities, and research experts, who discussed the impact of tax evasion, smuggling, and illicit trade in the tobacco sector.

Presenting the findings, IPOR Executive Director Tariq Junaid stated that data collected from 1,520 retail shops across 38 markets in 19 districts revealed that 51 percent of cigarette brands do not comply with government regulations. Violations include the absence of Track and Trace stamps, non-compliance with the minimum legal price, and failure to display pictorial and textual health warnings as required under health laws.

According to the report, out of 477 cigarette brands, only 49 percent were found to be fully compliant with applicable rules. A total of 320 smuggled brands and 121 locally manufactured brands were being sold without Track and Trace stamps. The minimum legal price of Rs 162.25 per pack was also found to be poorly enforced, with only a few brands selling above the government-mandated threshold.

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The research further revealed that although retailers are generally aware of the Track and Trace System, only 40 percent reported facing any difficulty in selling illegal cigarettes, indicating weak enforcement of the system.

Speaking at the event, Dr. Nasir Iqbal, Registrar and economist at the Pakistan Institute of Development Economics (PIDE), said the situation reflects institutional weaknesses and a lack of effective coordination among relevant authorities. He emphasized that the problem cannot be addressed without integrating fiscal discipline with regulatory reforms.

Mahwish Mumtaz, Assistant Chief (Policy) at PIDE, stressed the importance of evidence-based policymaking, noting that weak enforcement is not only harming the national exchequer but also posing serious risks to public health.

From the FBR, Javed Iqbal, Project Director of the Track and Trace System, outlined steps being taken to strengthen monitoring mechanisms and intensify actions against illicit trade.

In his concluding remarks, Minister of State Bilal Azhar Kiyani reaffirmed the government’s commitment to the effective implementation of the Track and Trace System. He emphasized that strict monitoring, strong legislation, and enhanced inter-agency coordination are essential to eliminating illegal trade.

The session concluded with the presentation of key recommendations, including stricter enforcement at the retail level, improved coordination among relevant institutions, and more effective use of tax and pricing mechanisms.

IPOR reiterated its commitment to supporting policymakers through evidence-based research to help strengthen Pakistan’s tax system, stabilize the economy, and safeguard public health.