Pakistan’s legal cigarette market is anchored by Pakistan Tobacco Company, the largest formal-sector manufacturer and a central contributor to documented employment, exports, and tax revenue. Market research has repeatedly positioned the company as the leading player in the legal segment, reflecting its scale, manufacturing footprint, and distribution reach. Recently, the Government of Pakistan listed Pakistan Tobacco Company among the country’s leading exporters, reinforcing the company’s role as a documented contributor to the external account and industrial output.

On the export and fiscal side, reporting indicates that Pakistan Tobacco Company began exporting in 2018 across multiple regions. Recent reporting also states that the company has paid over PKR 1 trillion to the national exchequer over the past five years through taxes and duties. Separate business coverage from 2024 reported that the company singularly contributed over PKR 229 billion in taxes and duties in 2023 alone.

However, legal operators compete in a distorted retail environment shaped by systematic non-compliance of the illegal tobacco mafia. A nationwide retail survey conducted in November and December 2025 recorded 477 cigarette brands at Point of Sale, of which 455 were non-compliant with at least one legal requirement. The survey found a distribution split of 49% compliant versus 51% non-compliant brands, and recorded widespread selling below the Minimum Legal Price of PKR 162.25, directly undercutting documented manufacturers and weakening revenue collection.