Market & legal data in the tobacco alternatives sector in Pakistan

12th March 2025: Pakistan: The International Monetary Fund (IMF) has rejected the Federal Board of Revenue (FBR)’s proposal to lower taxes on cigarettes and beverages, press reports. The IMF stated that these taxes cannot be reduced immediately but suggested that a revision may be considered in the next budget. Following this decision, the tax-paying tobacco industry expects tax revenue from the sector to decline to PKR243bn ($866m).
12th March 2025: Middle East: The World Health Organization (WHO) Regional Office for the Eastern Mediterranean published a post on 11th March on the social media platform X that called on smokers to quit smoking, highlighting that smoking might decrease life expectancy by ten years.
5th March 2025: Pakistan: The Federal Board of Revenue (FBR) is advocating for a reduction in excise duties on cigarettes, arguing that lower rates could boost overall tax revenues. This proposal is part of broader efforts to convince the International Monetary Fund (IMF) – ahead of its review of the $7bn Extended Fund Facility (EFF) Pakistan secured last summer to stabilise its economy – that tax reductions in certain sectors, such as property transactions and tobacco, might help increase compliance and revenue collection. This measure could mitigate the difficulties in meeting tax revenues, and could be extended to novel tobacco products too.
28th February 2025: Middle East: The World Health Organization (WHO) Regional Office for the Eastern Mediterranean posted that while smoking rates in the region are declining, there is still significant room for improvement. The WHO urged its Eastern Mediterranean Region member states to strengthen tobacco control measures, including smoking bans in public places, prominent health warnings, and enhanced support services for smoking cessation. Notably, the thread makes no reference to novel tobacco products such as e-cigarettes or heated tobacco products.
28th February 2025: Pakistan: State minister Ali Pervaiz Malik called for exploring tobacco harm-reduction policies, following the example of countries like Sweden and New Zealand, in order to tackle the tobacco-related health burden in Pakistan. He talked about the economic impacts of tobacco-related health costs in Pakistan at the launching of Omni, a platform from British American Tobacco that is designed to drive awareness and informed discussions around tobacco harm reduction.
25th February 2025: Pakistan: A recent study has revealed that over 400 cigarette brands, accounting for more than half of total cigarette sales, are being sold in violation of national laws and without compliance with anti-tobacco regulations. The Institute for Public Opinion Research (IPOR) highlighted in its findings that the track-and-trace system, introduced in 2021 to curb the illegal tobacco trade, has proven insufficient in addressing the issue effectively.
21st February 2025: Pakistan: Mukhtar Ahmed Bharath, coordinator to the prime minister on health, has approved the proposal to revive the Tobacco Control Cell, reaffirming his commitment to tackling tobacco use in the country. Bharath made this pledge during a meeting focused on strengthening measures against tobacco consumption, with a particular emphasis on addressing nicotine addiction among youth.
13th February 2025: Pakistan: The federal government's decision to dissolve the Pakistan Tobacco Board (PTB) has been challenged in the Peshawar High Court (PHC), which has requested a response from the government about its plan to devolve the board to the provinces. Former and current PTB employees filed the petition, urging the court to declare the cabinet’s decision unlawful and unconstitutional, arguing that the board cannot be dissolved without approval from Parliament and the Council of Common Interest (CCI).
22nd January 2025: Pakistan: In an effort to reduce public spending, the Federal Cabinet has decided to wind up the Pakistan Tobacco Board (PTB) and transfer its core functions to the provinces. The PTB is in charge of regulating, controlling and exporting tobacco products, ensuring adequate standards and providing training in tobacco control. Its disappearance would entail the absence of a federal stakeholder, with consequences for tobacco control.
14th January 2025: Pakistan: Over the past decade, the country has lost over PKR567bn ($2bn) in tax revenue due to tobacco smuggling and illegal cigarette manufacturing. The figures were presented in a meeting chaired jointly by federal minister of state Ali Pervaiz Malik and finance adviser to the chief minister of Khyber Pakhtunkhwa province Muzammil Aslam. Possible solutions discussed included the expansion of the Federal Board of Revenue (FBR)’s Track and Trace System (TTS) to all cigarette manufacturing units, alongside stricter enforcement measures to curtail the spread of untaxed products. These solutions could potentially be extended to novel tobacco products, in an effort to compensate for the revenue losses.
6th November 2024: Pakistan: The Provincial Alliance for Sustainable Tobacco Control – an influential tobacco control non-government organisation (NGO), part of the Global Alliance for Tobacco Control (GATC) – has urged chief minister Ali Amin Gandapur to swiftly enact the Khyber Pakhtunkhwa Prohibition of Tobacco and Protection of Non-Smokers Health Bill, pending since 2016. This legislation aims to protect non-smokers from secondhand smoke in the northern province, which has a population of over 40m.
28th October 2024: Pakistan: The Action to Counter Illicit Trade (ACT) Alliance has praised the Federal Board of Revenue (FBR)'s efforts to fight illicit trade, which accounts for 70% of the market in Pakistan, press reports. The FBR also announced a new initiative to intensify its crackdown on smuggling and illegal cigarette sales, including the recruitment of additional enforcement personnel – an essential step towards curbing illegal trade, supporting legitimate businesses, and securing tax revenue.

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