Pakistan’s commerce ministry reviewed proposals from the tobacco industry focused on taxation and illicit cigarette trade ahead of the country’s federal budget announcement scheduled for June 12. The discussions with Pakistan Tobacco Company representatives took place as the government seeks to expand its tax base, strengthen revenue collection, and reduce undocumented economic activity under its IMF-backed reform program.
Industry stakeholders emphasized the impact of illicit cigarette sales on tax compliance and market competition, while government officials reiterated priorities around improving enforcement and formalizing the economy. The review comes as Pakistan prepares new fiscal measures aimed at balancing revenue generation with investment and growth objectives in the upcoming budget cycle.
