Islamabad, Pakistan, February 18, 2026: Muhammad Amin, Chairman of the Fair Trade in Tobacco (FTT) called on the Government of Pakistan to facilitate the legal tobacco sector to expand lawful tobacco exports and strengthen the country’s foreign exchange position through predictable, time-bound regulatory decisions and a dedicated export compliance pathway.
Amin said, “Pakistan’s export agenda is, in practical terms, a foreign exchange agenda. Sustainable improvement in the balance of payments requires higher export earnings and disciplined protection of the tax base from leakages that reduce fiscal capacity.” Tobacco, including unmanufactured leaf and manufactured products, remains part of that economic reality through farm incomes, processing, logistics, packaging, and a material stream of federal revenues, he added. “Export policy should therefore treat tobacco as a regulated economic commodity, managed through clear rules and measurable outcomes,” Amin said.
Recent reported data has shown a sharp rise in tobacco export value in FY 2024–25, with Pakistan Bureau of Statistics figures cited in mainstream and official reporting placing exports at about US$166.5 million, up from roughly US$64.5 million a year earlier. Federal signals in 2025 also pointed toward streamlining regulatory processes to sustain export momentum, including public statements that tobacco exports crossed the US$100 million mark and that exporters raised operational bottlenecks with the commerce ministry.
Predictability, however, remains the binding constraint. Export markets are won and lost on timelines, approvals, and consistent inter-ministerial coordination. A compliant factory can produce to foreign specifications, but delayed regulatory decisions can cause buyers to shift to alternative supply bases. Pakistan has already seen this risk materialize in the reported case of a US$20.5 million cigarette export order to Sudan, where execution of the order depended on an export-only allowance for 10-stick packs. Despite indications that the required amendment had top-level policy support, the necessary regulatory change was not issued in time, and the media later reported that the order was shifted to Bangladesh, which quickly fulfilled it.
Amin said that this episode should be treated as a “policy lesson, not a one-off controversy.” A legitimate public health debate can coexist with a robust governance model that codifies, enforces, and insulates export-only controls from administrative paralysis. When decisions stall, Pakistan loses foreign exchange opportunities today and suffers a reputation penalty that becomes more expensive in future tenders.
The illegal cigarette and tobacco trade further amplifies the damage. He warned that illegal operators are stealing over Rs. 400 billion in taxes annually through non-duty-paid supply chains that evade track-and-trace, violate health warning requirements, and undercut compliant businesses on price. “This pattern shrinks the tax base, weakens regulatory control, and penalizes those who comply.”
FTT urged the government to adopt a practical solution centered on an export-only compliance corridor, including bonded production lines, customs supervision, sealed warehousing, documented shipping procedures, track-and-trace integration, and strict penalties for any diversion to the domestic market. Consistent, intelligence-led enforcement against illegal manufacturing, smuggling, and retail distribution should proceed in parallel so that compliance is rewarded and illegality is eliminated.
Amin said, “Exports are not a slogan, and foreign exchange does not arrive through statements. It arrives through contracts that are executed on time. Pakistan should facilitate legal tobacco exports, protect the compliant tax base, and dismantle the illegal tobacco economy that is bleeding revenues and damaging investor confidence.”