The anti-tobacco organization has raised concerns about Pakistan's decision to entrust its tobacco tracking system to the National Radio and Telecommunication Corporation (NRTC) - a company that procures tracking technology from Inexto.
Inexto has 16 former employees from Philip Morris International (PMI), including staff who were involved in the development of Codentify, a tracking system for the tobacco industry.
Pakistan has joined the Protocol to Eliminate Illicit Trade in Tobacco Products, which requires participants to establish a tobacco trade tracking system. The agreement mandates that the system "shall not be performed or delegated to the tobacco industry.
Although Codentify was sold to Inexto in 2016, critics have raised objections to PMI and Inexto's claim that the system is independent of the tobacco industry.
The anti-tobacco organization STOP stated in a case study that, in light of the tobacco industry's history, there are doubts as to whether Pakistan's system for tracking tobacco trade meets the requirements of the Illicit Trade Protocol.
There are concerns regarding the connection between NRTC and Inexto, as they lack experience in installing tracking systems, and NRTC's solution will not involve mobile applications, which were required in the original bid. Two unsuccessful bidders in the tender process are now questioning the decision of the Islamabad High Court to award the contract to NRTC.
On July 1st, the tobacco tracking system became mandatory in Pakistan. Several companies requested additional time from the Federal Board of Revenue in Pakistan to continue selling cigarettes without tax stamps and unique identification marks.
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