In a recent episode by The Express PAkGazette Podcast, in collaboration with #BehtareenPakistan, experts warned that Pakistan loses more than RS300 billion annually due to trade without control of illicit cigarettes.
The conversation highlighted how tax evasion, the weak application of the monitoring and trace system, and regulatory lagoons are paralyzing both public income and health safeguards.
Speaking in the podcast, the CEO of the Institute for Public Opinion Research (IPOR), Junaid IQbal, said: “This is not just a health problem, it is an economic crisis.
When more than 40% of the cigarette market is without exile, the State loses the ability to finance vital services. The smuggers are filling the void while legitimate companies suffer. ”
The panelists revealed that illegal cigarette manufacturers are exploiting the system avoiding the Federal Special Tax and producing below the legal price threshold.
These unpopted products are sold at a low price, undermining legal manufacturers and contribute to a shadow economy that thrives in regulatory inaction.
The podcast also explored the widest impacts of illicit trade. Experts emphasized that this is not simply an income problem, but also has serious implications for public health. Illegal cigarette consumers are often exposed to unregulated products, potentially more harmful.
In response to these challenges, the panel advocated the urgent implementation of a completely functional track and trace system to digitally monitor cigarette production and distribution. They also requested more strict sanctions for offenders and a more transparent supervision by tax authorities.
Iqbal emphasized: “There must be a serious political will to act. The solution is not just about the application, it is about protecting Pakistan’s economy from systemic exploitation.”
The podcast concluded with a consensus that only a coordinated approach, which combines technology, regulation and consciousness) can dismantle illegal trade and claim lost income for the nation.
