Islamabad, Pakistan, July 16, 2026: Fair Trade in Tobacco (FTT) has expressed serious concern over the reported theft and misappropriation of 2,828 cartons of cigarettes, valued at approximately Rs. 250 million, from Federal Board of Revenue warehouses in Swabi and Mardan.
Muhammad Amin, Chairman of Fair Trade in Tobacco, said the reported disappearance of confiscated cigarettes from government custody was not an ordinary theft. It represented a direct challenge to the state’s enforcement system and raised questions about the security, documentation, supervision and disposal of goods seized from the illegal cigarette trade.
“The government seizes illegal or non-duty-paid cigarettes after committing public resources, deploying enforcement personnel and confronting organized interests. When those cigarettes subsequently disappear from government warehouses, the entire enforcement process is compromised,” Amin said.
He noted that the Senate subcommittee examining the case had reportedly been informed about serious administrative weaknesses, including the absence of a designated warehouse officer, official stock registers, and staff duty rosters. Reports also indicated that 10 officials had been suspended and other officers had been transferred as authorities examined possible links to business interests.
“These findings require a complete, independent and time-bound investigation. Every person involved in the seizure, transportation, storage, documentation, and disappearance of the cigarettes must be questioned. The stolen stock must be recovered, criminal responsibility must be fixed, and the identities of all beneficiaries must be made public after due process,” Amin said.
FTT stated that the incident must also be viewed within the wider context of illegal cigarette manufacturing and trade in Khyber Pakhtunkhwa’s tobacco-producing belt, particularly in Swabi, Mardan, Charsadda, and Buner. These districts require stronger intelligence-led enforcement, factory inspections, retail-market surveillance, transport-route monitoring, and protection of seized stocks.
Amin said allegations that influential business, social, or political figures may be protecting illegal cigarette networks must be investigated without fear or favor. However, responsibility should be determined through evidence, financial trails, and lawful investigation rather than political rhetoric.
“The government is fighting hard against the illegal cigarette mafia, and this effort must not stop at any cost. No political name, commercial interest, official position, or local influence should be allowed to obstruct enforcement. The law must reach manufacturers, financiers, distributors, transporters, warehouse facilitators and retailers involved in the illegal supply chain,” he said.
FBR has officially estimated annual revenue losses from unlawful cigarette manufacturing and trade at approximately Rs250 billion to Rs300 billion. FTT believes the broader tax loss may exceed Rs400 billion when undeclared production, sales tax evasion, Federal Excise Duty evasion, under-reporting, and the expanding black market are taken into account.
“The actual commercial value of the illegal cigarette economy could be three or four times the estimated tax loss. Such a large undocumented cash economy raises serious questions about money laundering, political financing, corruption and the possible financing of other criminal activity,” Amin said.
FTT called upon the FBR, Federal Investigation Agency, Pakistan Customs, Khyber Pakhtunkhwa Police, and the provincial administration to establish a joint investigation mechanism to address warehouse theft and the wider illegal cigarette networks operating in the region.
The organization also recommended digital inventory systems, continuous CCTV monitoring, independent stock audits, tamper-proof movement records, clear custodial responsibility and prompt destruction of confiscated cigarettes under transparent procedures.
“This case must not disappear into files and committee proceedings. It should become a turning point in Pakistan’s struggle against the illegal cigarette mafia. Enforcement must continue, the stolen goods must be recovered, and every individual who enabled this breach must face the law,” Amin concluded.