Islamabad: Rising tobacco and nicotine use among Pakistan’s youth, especially around educational institutions, emerged as the central concern at a national review session on tobacco control held by the Aurat Foundation in Islamabad.
Participants from Parliament, government departments, health organizations, and civil society warned that easy availability of cigarettes, vapes, nicotine pouches, and flavored tobacco near schools is creating a growing public health threat. The discussion also pointed to a noticeable increase in tobacco use among women, indicating a shifting trend.
The session called for stronger legislation, faster policy action, and strict enforcement to counter the rapid spread of emerging nicotine products. Speakers emphasized that existing laws remain poorly implemented due to procedural delays, weak monitoring, and limited coordination between federal and provincial bodies.
The need for clear parental awareness, community engagement, and better recognition of new nicotine products was highlighted as an essential part of early prevention. Officials noted that families and schools often remain unaware of modern products marketed to young people.
Technical briefings identified major enforcement gaps and policy loopholes that allow the tobacco industry to expand its reach. Participants noted that companies are increasingly using social media trends, entertainment content, and youth-focused marketing to promote vaping in urban areas.
Government representatives reaffirmed ongoing federal efforts to implement the Prohibition of Smoking and Protection of Non-Smokers Health Ordinance 2002 and to tighten regulations where required. Provincial representatives also announced plans to introduce new resolutions to strengthen tobacco control.
Education sector officials raised alarms over the rise of nicotine products around private institutions and called for tougher regulatory checks. Regulatory authorities stressed the need for a broader social movement to counter tobacco use nationwide.
Closing the event, the Aurat Foundation reiterated its commitment to evidence-based advocacy, cross-sector collaboration, and long-term public awareness initiatives aimed at building a healthier, tobacco-free society.ISLAMABAD: Pakistan’s economy is losing over a staggering Rs. 300 billion annually due to an unsustainable tax regime, which has inadvertently incentivised illegal trade in the cigarette sector; a crisis that threatens not just tax revenues but also challenges the writ of the state.
This alarming revelation was made in a report titled “Towards an Optimal Tax Regime for Pakistan’s Tobacco Sector,” authored by renowned economist, Sakib Sherani and launched by ACT Alliance Pakistan at an event in the capital.
ACT Alliance Pakistan, a civil society network working since 2016 to combat illegal economy, tax evasion, smuggling, and counterfeiting, estimates that Pakistan loses close to $100 billion annually due to various illegal economic activities.
The findings of the report underscored the urgent need for strong policy interventions and enforcement measures to address the rapid expansion of illegal cigarette trade, which now dominates the market.
The report argues that the government has crossed the “optimal tax point”, where increasing tax rates now reduce revenue instead of raising it.
The price elasticity of demand for cigarettes in Pakistan is -1.4, meaning that higher prices significantly reduce legal sales while boosting illicit trade.
“The current tax policy on cigarettes is failing on multiple fronts,” explained Sakib Sherani. “Not only has it encouraged an expansion in illegal trade, but it has also created severe distortions in the market. The formal sector, which contributes over 98% of tax revenue collected from the industry, is shrinking, while illegal operators continue to thrive without any accountability.”
For the first time in Pakistan’s history, illegal cigarette volumes have surpassed legitimate sales for two consecutive years, making up 56% of the total market. Despite continuous tax increases on legally compliant brands, these measures have failed to achieve the intended revenue targets. Instead, higher prices on legal brands have driven consumers toward cheaper, tax-evading alternatives, depriving the government of much-needed revenue.
“The unchecked growth of illegal cigarettes is not just about lost tax revenue; it is an economic emergency,” said Mubashir Akram, National Convenor of ACT Alliance Pakistan. “Illegal trade in every sector, including cigarettes, fuels corruption, discourages investment, and cripples Pakistan’s ability to provide essential public services.
The government must now ensure implementation and enforcement of tax laws across the country”
The report analyses Pakistan’s tobacco taxation system, highlighting inefficiencies that have led to a significant rise in illicit cigarette sales, revenue losses, and public health concerns.
It argues for a balanced tax regime in the medium term that maximizes government revenue while addressing market distortions caused by excessive taxation.
Mubashir Akram argued that by maintaining the status quo, legal businesses have been overburdened while illegal operators have flourished. However, if real reforms are implemented, excise is rationalized and strict enforcement is carried out to bring illegal businesses into the net, Pakistan can progress to become economically secure.
The report outlines key policy recommendations to fix the system, including strengthening enforcement against tax-evading cigarette brands, ensuring full compliance with Track and Trace, and stopping predatory tax hikes on legally compliant businesses.
“Pakistan’s current tobacco taxation strategy is ineffective, leading to a decline in formal sector sales, a surge in illicit trade, and massive revenue losses. A more balanced, well-enforced tax regime is needed to ensure sustainable revenue generation while minimizing market distortions and public health risks,” concluded Sakib Sherani.
ACT Alliance Pakistan called on the government, regulatory bodies, civil society, and media to join forces against illegal economic activities. “The cost of inaction is too high. The country’s financial security, investor confidence, and economic sovereignty depend on eliminating the illegal economy and ensuring a fair, transparent system for all,” Mubashir Akram said
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