The Minister of State for Finance and Revenue, Bilal Azhar Kayani, reaffirmed the government's unwavering commitment to eliminating the illicit cigarette trade by strengthening law enforcement and regulatory frameworks. Speaking at the launch of a review report on the illegal tobacco sector organized by Oxford Economics, the Minister highlighted that Pakistan, like many other nations, faces a massive challenge with undocumented tobacco. He noted that over 25% of the country’s total cigarette production and consumption—approximately 20 billion sticks—evades taxes and duties, resulting in a staggering annual revenue loss of Rs. 137 to 200 billion for the national exchequer.
Minister Kayani identified the problem as largely internal, driven primarily by tax evasion and undocumented local manufacturing, though the smuggling of finished products and raw materials remains a significant factor. He detailed the government’s aggressive interventions throughout 2025, which included the implementation of a comprehensive Track and Trace System and nationwide crackdowns on illegal factories, distributors, and retailers. These efforts successfully dismantled several criminal networks; however, the Minister cautioned that these syndicates are evolving by shifting production to clandestine locations, such as residential homes and agricultural lands, to evade detection.
The Minister emphasized that Prime Minister Shehbaz Sharif has taken direct notice of these shifting tactics and is personally overseeing the strategy to counter them. Despite the challenges posed by criminals who exploit new smuggling routes and interfere with supply chains at the raw material stage, the government remains resolute in its mission to protect public revenue. Minister Kayani concluded by asserting that upholding the rule of law and supporting legitimate, tax-paying businesses is essential for fostering a stable investment climate, which remains a top priority for Pakistan’s economic growth.
