Islamabad, Pakistan, February 7, 2026: Fair Trade in Tobacco (FTT) welcomed the Government of Pakistan’s recognition of Pakistan Tobacco Company Limited (PTC) as one of the country’s leading exporters, and urged a policy environment that rewards compliance and export performance. Recent reporting on this recognition notes that PTC began exporting in 2018, has recorded exports exceeding US$200 million over the past eight years, and has reported payments exceeding Rs1 trillion over the past five years.
Muhammad Amin, Chairman of FTT, said the recognition sends an important signal to investors and export markets that Pakistan can compete when compliant businesses operate in a predictable manner. “A legal, regulated cigarette manufacturer can only win export orders if it can plan production, meet international quality requirements, and ship on time,” he said. “Every lawful export order earns precious foreign exchange, supports jobs, and strengthens confidence in Pakistan’s formal economy.”
Amin noted that PTC has also been acknowledged at the highest level for tax compliance, including the Prime Minister’s Excellence Award and a top taxpayer award in the all taxes category. He said that recognition must be matched by practical facilitation, including timely regulatory clearances linked to export shipments, efficient port and customs handling, and rapid resolution of avoidable administrative hurdles that can cause export orders to shift to competitors. Predictable tax administration and quick export approvals lower cost and risk for exporters.
Illegal cigarette and tobacco trade, Amin said, remains the single largest barrier to a fair market and a credible tax system. Multiple reports, including state news coverage, have warned that Pakistan is losing close to or over Rs. 400 billion annually due to tax evasion tied to illicit cigarettes, smuggling, counterfeiting, and non-compliant manufacturing. “This is theft from the national exchequer,” Amin said. “It punishes companies that pay, while rewarding those who break the law.” He added that illegal cigarette operators commonly bypass track and trace, violate health warning rules, and sell below legal minimum prices.
Amin stated that acting decisively against the illegal sector would expand the tax base, raise annual revenues without placing additional burden on compliant taxpayers, and improve Pakistan’s standing with foreign investors evaluating governance risk. “Foreign investors watch whether a country protects lawful enterprise and enforces its own rules,” he said. “If Pakistan shuts down untaxed supply chains that undercut compliant businesses, it will strengthen investor confidence and reduce the governance risk premium.” A fair market would allow lawful firms to invest in capacity, pay more taxes, and quickly expand exports into new markets.
FTT urged a coordinated, intelligence-led enforcement approach across FBR, Customs, provincial enforcement agencies, and district administrations, with a focus on dismantling repeat-offender networks, disrupting retail distribution, and targeting the financing and logistics that keep illegal brands in circulation. Amin emphasized that enforcement must be consistent, not episodic, and that documented manufacturers should be engaged as stakeholders in compliance solutions, not treated as revenue sources while illegal operators expand.
Amin concluded, “The government has taken a positive step by recognizing a leading exporter and a leading taxpayer. The next step is to create a level playing field, facilitate legal cigarette and tobacco exports, and eliminate the illegal cigarette industry that drains revenues, damages legitimate investment, and weakens Pakistan’s economic credibility.”