According to a report by media outlet Samaa on January 22nd, the counterfeit cigarette scandal is causing a major uproar in Pakistan, with an astonishing loss of 5.7 billion Pakistani Rupees (approximately 34 million USD) to the national treasury annually. Currently, private tobacco giants are exerting pressure on the government to implement a stronger tracking and enforcement system to curb the spread of the black market.
Representatives of the Pakistan Tobacco Company (PTC) vividly described the challenges facing the industry at a recent media briefing. They emphasized the government's sluggish response to the illegal tobacco trade and urged it to take concrete measures to prevent further deterioration of the issue.
A spokesperson for the Pakistan Tobacco Company (PTC) has expressed grave concerns over the issue of counterfeit tobacco, stating that an estimated 850 million packs of counterfeit cigarettes flow into major cities such as Karachi, Lahore, and Islamabad each year, resulting in a loss of more than 5.7 billion Pakistani rupees to the national treasury. The spokesperson has called on the Federal Board of Revenue to prioritize robust tracking and enforcement systems for monitoring this problem.
The media briefing further exposed the despicable actions of counterfeiters, revealing their practice of printing fake cigarette labels on counterfeit well-known tobacco brands. This discovery highlights the urgency to implement existing laws and regulations. A spokesperson for the PTC expressed deep concern over the sharp decline in legal tobacco production, stating, "In just five months, our production has plummeted by 40%, while the market share of illegal tobacco has surged. It is apparent that the police and FBR are powerless to enforce the relevant laws, allowing this illegal trade to rampage.
What is more concerning is that counterfeiters have managed to evade tracking and enforcement systems, despite their existence. The significant issue of counterfeit cigarette labels on illegal tobacco seriously calls into question the effectiveness of the system and highlights the urgent need for an immediate upgrade and stricter enforcement of the existing system.
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