Karachi: May 14, 2026: Philip Morris Pakistan Limited has appreciated recent nationwide enforcement actions against illicit cigarette trade, saying the crackdown would help protect Pakistan’s documented economy, improve revenue recovery, and ensure fair competition for tax-compliant businesses.
The company said strategic guidance issued by Prime Minister Shehbaz Sharif to the Federal Board of Revenue (FBR) and provincial authorities had strengthened and accelerated action against non-duty-paid cigarettes and illegal trade activities across the country.
Enforcement operations during 2025-26 led to the confiscation of illicit cigarettes and raw materials equivalent to approximately 17 billion cigarette sticks, representing nearly 40 per cent of the total illicit cigarette market. The company said improved coordination between the FBR, Ministry of Finance, and provincial authorities had contributed to greater compliance within the tobacco sector.
Marco Mariotti, President CIS and Central Asia at Philip Morris International, during his recent visit to Pakistan, stated that the recent enforcement measures led by FBR and provincial authorities reflect a strong institutional commitment toward addressing illicit trade and strengthening market compliance. Sustained enforcement remains essential for improving revenue collection, transparency and supporting Pakistan’s broader economic objectives.” He further commended the government’s persistent focus on formalizing the informal sector, enforcement priorities, and legal action against illicit trade, emphasizing that ongoing policy direction is vital for ensuring lasting progress against illicit trade.
It is pertinent to mention that illicit cigarette trade causes annual revenue losses of approximately Rs300 billion to the national exchequer. Pakistan’s ongoing enforcement trajectory was consistent with practices adopted in several European markets, where sustained anti-illicit trade measures had yielded improved compliance and revenue recovery.
The company further added that efforts against illicit cigarette trade would also strengthen regulatory compliance frameworks, improve governance outcomes, and support broader economic formalisation.
The company reaffirmed its full support for continued collaboration between federal and provincial authorities to intensify enforcement against illicit trade and safeguard the formal economy.
