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.