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Tag: Pakistan

  • Pakistan: Cracking Down on Illegal Sheesha Cafes

    Pakistan: Cracking Down on Illegal Sheesha Cafes

    In a coordinated move, district administration and police teams in Pakistan conducted surprise raids, shutting down nine sheesha cafes operating illegally in Bahria Town’s Civic Center. The operation, aimed at curbing unauthorized indoor hookah services, resulted in the arrest of 60 men and 4 women allegedly linked to the businesses.

    According to the spokesman of Islamabad Capital Territory (ICT) administration, 110 hookah devices, along with flavored tobacco products, were confiscated during the raids. The crackdown follows growing concerns over violations of public health regulations and indoor smoking bans. Officials emphasized that the cafes were operating without permits and failed to comply with safety standards.

    District officials highlighted that the action aligns with broader efforts to enforce anti-smoking laws, particularly in indoor spaces. “These facilities posed risks to public health and ignored legal guidelines,” stated a spokesman. “We will continue targeting non-compliant businesses.”

    Authorities confirmed that further inspections are planned across the district to identify similar operations. Residents have been urged to report illegal shisha services via dedicated hotlines. The crackdown marks a renewed push to uphold public health laws, with officials vowing zero tolerance for unauthorized hookah businesses.

  • Punjab to Get Strict With Public Smoking Ban 

    Punjab to Get Strict With Public Smoking Ban 

    Pakistan’s Prohibition of Smoking Ordinance 2002 outlawed smoking in public, but the law was rarely enforced. The Punjab provincial government is looking to change that, however, ordering strict enforcement across the province, including in Rawalpindi. According to reports, the enforcement will be mostly centered around educational institutions, but will also include government offices, hospitals, shopping malls, and public transport. The Express Tribune reported that violators could face fines ranging from Rs1,000 to Rs100,000 ($3.60 to $360) depending on the severity of the offense.

    The provincial government directed all public institutions, especially those under the School Education Department, to appoint focal persons and trainers for tobacco control enforcement.

    “Our top priority is to protect students from tobacco use,” Commission Coordinator Syed Nazrat Ali said. “Tobacco consumption leads to throat cancer, heart disease, and lung disorders, causing over 160,000 deaths annually.” 

    “It is now mandatory for cigarette retailers to display warning notices. Selling cigarettes within 50 meters of educational institutions is strictly prohibited.” He added that designated officers have the authority to impose fines, shut down shops, and confiscate goods in case of non-compliance.

  • Pakistan: IMF Urges Better Control Over Illicit Trade

    Pakistan: IMF Urges Better Control Over Illicit Trade

    The International Monetary Fund (IMF) raised concerns over tax evasion in Pakistan’s cigarette sector, citing that illicit and untaxed cigarettes now account for up to 50% of the industry. According to sources, concern was raised with Pakistani authorities by the IMF delegation during talks about unlocking a $1 billion loan under the current program.

    Sources said that the IMF urged Pakistan to regulate the illegal tobacco market, with discussions also covering a market study on illicit cigarette trade during a detailed session with the Federal Board of Revenue (FBR) regarding the Track and Trace system.

    The IMF lauded FBR’s Track and Trace mechanism, noting that it has significantly reduced tax evasion across four key sectors—sugar, cement, fertilizer, and tobacco. However, it expressed dissatisfaction over the retail sector’s tax compliance, stressing the need for improved revenue collection.

  • Pakistani Growers Getting Squeezed as Cultivation Begins

    Pakistani Growers Getting Squeezed as Cultivation Begins

    Growers in Pakistan started cultivating Virginia and white Patta tobacco last week, but news for them was not all good as purchasing companies have again slashed their quota. The quota was 85.5 million kg in 2023, 77.3 million in 2024, and now reportedly 74.8 million kg for this year. Making the matter worse, according to Liaqat Yousafzai, central president of Tobacco Growers Association Pakistan, is that purchasing companies again didn’t notify growers of their intentions, causing farmers to spend time and money growing surplus crop that will be thrown away.

    “The big issue is that the companies’ demands are decreasing while the tobacco production is increasing,” Yousafzai said. “It is the only cash crop with which the full-year expenditures of the farmers are linked. The companies have reduced their quota for the current year like 2024 without informing the growers in advance.”

    However, when contacted by reporters for The Dawn newspaper, officials for purchasing companies said they had made clear previously that the farmers who failed to execute agreements with the buyers of their choice should give up growing tobacco.

  • Pakistani Tobacco Growers Told to Avoid Surplus

    Pakistani Tobacco Growers Told to Avoid Surplus

    As purchasing companies in Pakistan have slashed their quotas for the year, officials from those companies are advising farmers against growing surplus tobacco. Those officials said that the growers had again reverted to growing tobacco after they were unable to cover the costs incurred on wheat production as official wheat rates were slashed drastically.

    Pakistan Tobacco Company, Philip Morris International, and a few national tobacco-purchasing companies were executing agreements with the growers, however, sources said small cigarette manufacturers avoid those agreements and wait to exploit the growers with leftover tobacco.

  • Pakistani Growers Demand Fair Prices

    Pakistani Growers Demand Fair Prices

    In a letter to the Pakistan Tobacco Board (PTB), farmers demanded that the minimum indicative price (MIP) be examined for the upcoming purchasing season. The letter said historically the Economic Coordination Committee kept MIP almost equal to the cost of production (COP), and thus there was virtually no return for the eight months of rigorous labor.

    “Tobacco growers are playing a critical role in the tobacco industry, generating employment for thousands, revenue for the federal government through taxes and foreign exchange from exports,” the letter said. “Therefore, time has come to realize the contribution and hardships of growers.”

    The letter further said there was a dire need for improving the economic condition of growers because if they fail the tobacco industry will collapse and cause unimaginable economic and social loss to the country.

    According to the requirements of tobacco marketing law MLO-487, the average market price should not be less than the previous year. However, the letter noted, that the tobacco marketing law had been flagrantly violated by the companies and that the PTB constantly sided with those companies over the growers.

    Officials of companies said they purchased tobacco according to the price set by the government.

  • PTB Dissolution Hurts Farmers, Opens Illicit Market

    PTB Dissolution Hurts Farmers, Opens Illicit Market

    The Pakistani government’s decision to dissolve the Pakistan Tobacco Board (PTB) and hand over the regulatory authority to provincial governments has sparked months of controversy, and will likely have severe economic, social, and regulatory consequences, said Osama Siddiqui, a macroeconomic expert.

    “The PTB has played a pivotal role in regulating tobacco production and the industry under a centralized system that benefits all stakeholders, including farmers and the legal tobacco sector,” Siddiqui said.

    He added that the dismantling of the system could lead to a surge in illegal tobacco cultivation and sales, which would undermine the legal industry. One of the PTB’s critical contributions has been ensuring fair prices for tobacco farmers, especially in Khyber-Pakhtunkhwa (K-P), where the majority of Pakistan’s tobacco is produced. By maintaining a balance between supply and demand, the PTB has safeguarded farmers’ interests, providing them with a stable income.

    The expert fears that provincial governments lack the capacity to manage this responsibility effectively. Without the PTB’s oversight, the farmers could face financial hardships due to falling prices and market instability. A decline in tobacco production will deprive the farmers of their livelihoods and leave them vulnerable to exploitation.

    The PTB’s centralized regulation has also fueled growth in tobacco exports, which increased from $42 million in 2019-20 to $108 million by the end of 2024. Additionally, legal tobacco sales have made a substantial contribution to the national treasury by generating Rs237 billion ($853 million) in revenue through the federal excise duty and sales tax.

  • Pakistan: Growers Stuck Between Federal and Local Government Row

    Pakistan: Growers Stuck Between Federal and Local Government Row

    The row between the Pakistani federal government and the Khyber Pakhtunkhawa (KP) provincial governments over Rs4 billion (USD $ 14.4 million) of assets from the Pakistan Tobacco Board (PTB) has deepened as the process of devolution of the board to the province in the works.

    Mohammad Ayaz Khan, a former member of the board of directors of PTB, told Dawn that federal the government decided to hand over PTB to the provincial government. A majority of government departments were devolved to the provincial governments following the passage of the nation’s 18th Amendment, however, the tobacco board was held by the central government due to its value and revenue-generating potential.

    The KP government made it clear that the PTB reserves, pensions to its employees, salaries of various officials and workers, buildings, vehicles, and all other facilities should be managed by PTB through the levy imposed on tobacco produced in the province.

    As the two sides position, the growers are stuck in the middle. Liaquat Yousafzai, central president of the Tobacco Growers Association, said that neither the federal government nor the provincial government spent a single penny on tobacco development. Despite huge incomes, he said the growers were always exploited and PTB failed to play its due role in that regard, leaving tobacco growers constantly trapped in financial quagmire.

    According to the process, the federal government will transfer important functions of PTB to the provincial government and while the rightsizing committee will submit its report in the current month, and then it will be decided how to hand over PTB to the province. 

  • Growers: Pakistan Government to Establish New Tobacco Board

    Growers: Pakistan Government to Establish New Tobacco Board

     Representatives of farmers in Khyber Pakhtunkhwa (KP), Pakistan, petitioned the Pakistan Tehreek-e-Insaf-led provincial government to establish the Pakhtunkhwa Tobacco Board through legislation to protect and safeguard the rights and interests of poor growers in the province.

     “According to Pakistan’s Constitution, agriculture is a provincial subject,” said Liaqat Yousafzai, central president of the Tobacco Growers Association Pakistan. “However, the federal government had illegally and unconstitutionally taken control of it. Now, under the downsizing policy, the federal government has decided to either abolish or transfer certain government departments and institutions to the provinces, including the Pakistan Tobacco Board (PTB).”

    He urged the provincial government to seize the opportunity and set up the Pakhtunkhwa Tobacco Board to stop the ongoing exploitation of growers at the hands of existing PTB and the multinational and national tobacco companies. Local leaders have long argued control of tobacco should be handed over to the province as per the constitution.

    The Tehreek-e-Ittehad Kashtkaran Pakhtunkhwa leaders, including TIKP’s chairman Arif Ali Khan, senior vice-chairman Dawood Jan Khan of Ismaila, vice-chairman Iqbal Khan of Shewa, general secretary Asfandyar Khan, joint secretary Shahab Khan, Ahmad Jan Kaka of Marghuz and others also attended the meeting.

    “Now that the federal government has decided to withdraw from it and transfer the Pakistan Tobacco Board to the province, it is the responsibility of the KP government to move forward and take the control of the province’s most lucrative crop, tobacco, into its own hands,” Khan said.

    The speakers said the existing PTB was established in 1968 but did not include any provisions for the protection of the interests of tobacco farmers. Some protections for farmers were added over time, however, “due to the federal government’s lack of interest and at the behest of tobacco companies, the implementation of these laws had not been carried out in recent years, and the tobacco crop has been under the control of multinational companies,” they said. 

  • Pakistani Farmers Plan Protests Over Quota Cuts

    Pakistani Farmers Plan Protests Over Quota Cuts

    Tobacco growers in Khyber Pakhtunkhwa have announced a protest campaign against the Pakistan Tobacco Board (PTB) and purchasing companies, accusing them of favoring corporate interests and exploiting farmers. During a meeting led by Tehreek-e-Ittehad Kashtkaran Pakhtunkhwa (TIKP), leaders outlined a phased protest strategy, including public rallies in key tobacco-producing districts and sit-ins outside the PTB in Peshawar, Parliament House, and federal government offices in Islamabad. The growers are protesting a 14.2% reduction in the tobacco quota for 2024, claiming it was announced too late for them to adjust their planting decisions.

    The leaders demanded timely quota announcements, curbs on the smuggling of foreign cigarettes, and increased government support for tobacco exports to boost revenue and benefit farmers. They also criticized the lack of investment in tobacco-producing regions, despite legal obligations for companies to allocate 6% of profits to local development. Additionally, they called for the abolition of the contractual employment system in the tobacco sector and the removal of advance taxes on re-dried tobacco to improve growers’ livelihoods and ensure fair labor practices.