In Pakistan, the Senate Standing Committee on National Health Services, Regulations and Coordination reviewed a private member’s bill this week aimed at banning vapes. The committee examined the Electronic Nicotine Delivery Systems (Regulation) Bill, 2025, discussing its provisions in detail. While members acknowledged the intent behind the legislation, the ministry highlighted objections from stakeholders and recommended a complete ban on the use of vapes, citing concerns that these devices could be misused to facilitate drug intoxication.
Tag: Pakistan
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Pakistani Growers Seek Help Over Issues with Tobacco Companies
The chairman of the Tobacco Growers Association in Pakistan’s Khyber Pakhtunkhwa province, Daud Jan Khan, said 2026 had the potential to be one of the worst years for growers, accusing national and multinational purchasing companies of exploitative practices and alleging that the Pakistan Tobacco Board (PTB) failed to enforce agreements under Martial Law Order 487 or ensure proper use of cess funds for tobacco-growing regions. Khan led a seven-member delegation that met with Governor Faisal Karim Kundi, who, after the meeting, pledged to address farmers’ concerns on a priority basis.
Khan also claimed exports declined due to harassment of small dealers by tax authorities and said the governor promised to convene a joint meeting with companies and PTB officials after Eidul Fitr to seek solutions.
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Pakistani Governor Calls for More Revenue to Tobacco Farmers
Faisal Karim Kundi, governor of Khyber Pakhtunkhwa, said the province—Pakistan’s largest tobacco producer—does not receive a fair share of industry profits and tax revenues, despite its significant contribution to national output. Speaking during a meeting at Governor House with Pakistan Tobacco Board Secretary Fakharuddin Khan, officials noted that tobacco is cultivated across districts including Swabi, Mardan, and Charsadda, generating Rs320 billion ($1.2 billion) annually and supporting around 1.2 million livelihoods nationwide, while contributing Rs483 billion ($1.7 billion) in Federal Excise Duty and Sales Tax in FY2024-25. The governor called for greater reinvestment in the province, stronger farmer protections, transparent procurement, adoption of modern farming practices and expanded exports to bolster both provincial and national economic stability.
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Pakistan Bill Would Treat Vape Like Cigarettes
Pakistan’s Senate Standing Committee on National Health Services approved the Electronic Nicotine Delivery Systems (Regulation) Bill, clearing the way for its introduction in the Senate as authorities move to curb rising youth vaping, particularly in Islamabad. The bill would impose strict controls on the import, sale, marketing, and use of e-cigarettes, including a ban on sales within 50 meters of schools and colleges, a minimum purchase age of 18, and a prohibition on vape use in public transport, government buildings, parks, and other shared spaces.
The proposed legislation would regulate vapes similarly to traditional tobacco products, banning all advertising—especially marketing aimed at minors—and requiring product standards such as nicotine caps of 40 mg/ml, child-resistant packaging, health warnings, and mandatory age verification for e-commerce sales. Penalties include fines of up to Rs 50,000 ($175) for first offenses, with escalating sanctions for repeat violations and smuggling. The bill is undergoing inter-ministerial review before formal Senate consideration, signaling tighter oversight for the nicotine and vaping market in Pakistan.
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Pakistan Seizes $68M in Illicit Raw Tobacco
Pakistan’s Regional Tax Office (RTO) Peshawar sealed several warehouses in District Mardan, Khyber Pakhtunkhwa, and seized non-duty-paid raw tobacco as part of a tax evasion crackdown. Authorities estimate the operation exposed tax evasion worth Rs19 billion ($68.4 million), marking a major enforcement action by the Federal Board of Revenue (FBR).
According to an official statement, the RTO confiscated around 2.75 million kg of raw, non-duty paid tobacco from the Khyber Tobacco Company. The evaded Federal Excise Duty on the recovered stock is estimated at Rs1.1 billion ($4 million), and further action is expected against the company.
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Pakistan’s Pouch Market Reshaping Tobacco Landscape
With a smoking rate of 19.5% and high instances of smoking-related illnesses, Pakistan is beginning to embrace the shift to lower-risk alternative products, including a quickly expanding nicotine pouch market that is not only good news for health advocates but is creating business opportunities as well.
Philip Morris (Pakistan) Limited recently began local production of ZYN at its Sahiwal facility, following British American Tobacco’s early entrance with Velo in 2019, solidifying Pakistan as a key growth market for modern oral nicotine products. Industry momentum is being driven by strong demand from adult tobacco users seeking alternatives to cigarettes and traditional oral products such as paan, naswar, and gutka. A recent LMIC case study cited Pakistan as having the world’s largest consumer base for nicotine pouches, noting toxicant levels far lower than in conventional oral tobacco.
Local production is boosting jobs, tax revenue, and regulatory oversight, but authorities are expected to weigh stricter age controls, product standards, and monitoring as the category scales.
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Pakistan Seals Two Cigarette Factories for Illicit Trade
Pakistan’s Federal Board of Revenue (FBR) sealed the manufacturing units of M/s Indus Tobacco Company and M/s Souvenir Tobacco Company in Mardan for “producing and circulating non-duty-paid and non–track-and-trace-stamp (TTS) cigarettes,” marking a historic enforcement action against politically connected operators, according to The Dawn. During raids, 62 cartons of illegal cigarettes were seized, and the manufacturing machinery of both companies was locked. Authorities confirmed that the crackdown targets the growing illicit cigarette market, which is estimated to cost Pakistan Rs. 250–300 billion ($900 million to $1.1 billion) annually in lost revenue.
The operations were conducted by the Directorate of Intelligence & Investigation–IR Peshawar and officers from the Regional Tax Office Peshawar despite resistance from armed personnel linked to prominent local politicians. According to Pakistan’s Business Recorder, the factory closings happened “despite extraordinary pressure by a prominent political personality,” and included “apparent threats to the FBR officials.”
The actions form part of a multi-layered national enforcement plan, backed by the Prime Minister and the Pakistan Army, aimed at dismantling illegal cigarette production, strengthening monitoring systems, and disrupting illicit supply chains. Over 200 FBR monitors and 120 Pakistan Rangers personnel have been deployed nationwide to oversee production, ensure lawful removal of goods, and prevent illicit manufacturing at Green Leaf Threshing units. The FBR emphasized that no political pressure would deter the enforcement of tax laws, highlighting the unprecedented sealing of factories previously protected by political influence.
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Pakistan Tobacco Demand Slashed, Farmers Taking Losses
Tobacco purchasing companies in Pakistan have reduced their demand for the 2026 crop by 13.2 million kg, setting total requirements at 61.627 million kg. This marks the fourth consecutive year of cutbacks, with overall demand falling from 85.5 million kg in 2023 to 77.3 million kg in 2024, 74.8 million kg in 2025. The bulk of purchases will be made by multinational firms, led by Pakistan Tobacco Company and Philip Morris (Pakistan) Ltd, which together account for more than 36 million kg of flue-cured Virginia (FCV) tobacco. The remaining FCV demand will be met by 78 national companies, including Khyber Tobacco. While demand for FCV, dark air-cured, and sun-cured tobacco has declined, requirements for White Patta and burley tobacco have increased slightly.
Industry experts note that farmers are facing severe financial losses due to limited storage options and price discrepancies between the weighted average price (Rs 719 per kg) and the minimum indicative price (Rs 545 per kg [$1.96]). Companies profited by Rs 6.2 billion ($22.2 million) from surplus purchases at lower rates in 2025, while growers bore the losses. Despite reduced domestic demand, tobacco exports surged from 20 million kg in 2023-24 to 47 million kg in 2024-25, a 135% increase. However, Ayaz Khan, former director of the Pakistan Tobacco Board, said the benefits of rising exports have not reached farmers, who remain vulnerable to falling purchase prices and shrinking demand, leaving them at a disadvantage compared to multinational and national firms.
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Pakistan to Digitally Monitor Tobacco Manufacturing
Pakistan’s Federal Board of Revenue (FBR) directed all tobacco manufacturing units to install IP-based CCTV cameras at designated points in factories and green leaf threshing stations to monitor production and reduce tax evasion, according to Sales Tax General Order No. 7 of 2025. The move requires that finished goods cannot leave factory premises unless the production process is fully recorded and monitored in real time. The measure applies to both local and multinational manufacturers and covers all stages from green leaf processing to cigarette production.
The FBR collects 18% sales tax and federal excise duty on domestic cigarette sales, ranking the sector among the top revenue generators. Authorities believe current collections fall short of potential, estimating that proper monitoring could increase revenues to approximately Rs600 billion ($2.1 billion).
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Study: 81% of Cigarettes in Pakistan Illegal
A new survey by Stop Illegal Trade (SIT) revealed that over 81% of cigarette brands sold in Pakistan lack tax stamps, exposing widespread excise duty evasion. Only 12% of brands were fully compliant, while nearly 7% appeared in both taxed and untaxed forms, suggesting the existence of a parallel illegal distribution network. The report, “The Unchecked Rise of Illicit Cigarettes in Pakistan,” also found that 47% of cigarette brands failed to display mandatory health warnings, and many were being sold below the government’s minimum retail price of Rs 162.25 ($0.57), violating national tobacco control laws.
SIT’s spokesperson said the findings highlight “regulatory weaknesses” enabling tax evasion and black-market sales that harm both government revenue and public health. The illicit cigarette trade is estimated to make up more than half of Pakistan’s total market, causing annual revenue losses exceeding Rs 415 billion ($1.5 billion).
SIT urged authorities to intensify retail inspections, enforce compliance, and dismantle the networks behind untaxed and non-compliant cigarette sales.