In a recent episode of Express Pakinomist Podcast, experts in collaboration with #Behtareenpakistan warned that Pakistan is losing more than RS300 billion annually due to the uncontrolled trade in illegal cigarettes.
The conversation highlighted how tax evasion, weak enforcement of the track and the tracking system and regulatory logging holes suffer from both public revenue and health protection measures.
In a talk about the podcast, CEO of the Institute of Public Opinion Research (IPOR), Junaid Iqbal, said: “This is not just a health question – it’s an economic crisis.
When more than 40% of the cigarette market goes unclear, the state loses the opportunity to finance vital services. Smugglers fill the gap while legitimate companies suffer. “
Panelists revealed that illegal cigarette producers are utilizing the system by avoiding the federal excise duty and producing below the legal price limit.
These unskilled products are then sold cheaply, undermine legal producers and contribute to a shadow economy that thrives on legislative passivity.
The podcast also explored the broader effects of the illegal trade. Experts emphasized that this is not only a matter of income – it also has serious consequences for public health. Consumers of illegal cigarettes are often exposed to unregulated, potentially more harmful products.
In response to these challenges, the panel for the urgent implementation of a fully functional track-and-tracking system went to digitally monitor cigarette production and distribution. They also called for harsher sanctions for offenders and more transparent supervision of the tax authorities.
Iqbal emphasized, “There must be a serious political will to act. The solution is not just about enforcement – it’s about protecting Pakistan’s economy from systemic exploitation.”
The podcast concluded with a consensus that only a coordinated approach – by coming to technology, regulation and attention – can dismantle the illegal trade and regain lost income for the nation.
