Enforcement against illegal cigarettes will strengthen revenue, investor confidence: ACT Alliance

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 20th May, 2026) Mubashir Akram, Country Director of ACT Alliance Pakistan, has praised the government for intensifying enforcement against the illegal tobacco trade, calling it essential for protecting Pakistan’s revenue system, legal businesses, and investor confidence.

He said recent action against illegal cigarette manufacturing, smuggled brands, non-duty-paid products, and violations of the track-and-trace system reflects a serious commitment to safeguarding the documented economy, said a news release here on Wednesday.

According to Akram, the illegal tobacco sector causes annual tax losses exceeding Rs 300 billion. He noted that the actual scale of the illicit cigarette market is far greater because it includes manufacturing, transportation, warehousing, wholesale distribution, retail sales, and networks that support illegal operations.

He described the trade not as a routine market issue, but as “organized economic sabotage” that weakens state authority, damages compliant businesses, and drains public revenue.

Akram emphasized that Pakistan cannot afford inconsistent enforcement. He appreciated the efforts of the Prime Minister and the Federal board of Revenue (FBR) for taking action in a market where illegal operators have long enjoyed protection and space to operate.

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However, he stressed that enforcement must become a permanent state policy rather than a temporary campaign.

He argued that action against illegal cigarettes should be part of a broader crackdown on the undocumented economy, including smuggling, counterfeiting, under-invoicing, tax evasion, and non-duty-paid goods across various sectors. Sustained enforcement, he said, could significantly improve Pakistan’s fiscal position, increase documentation of the economy, and bring lawful capital back into formal circulation.

Akram also linked the issue directly to foreign and domestic investment. While Pakistan’s large population and young workforce offer strong business potential, investors also evaluate whether the government can enforce laws fairly and protect legitimate businesses. He warned that if illegal operators are allowed to influence or obstruct enforcement actions, it would damage Pakistan’s credibility and discourage investment.

He concluded by calling for stronger coordination among federal and provincial institutions to eliminate illegal cigarette factories, smuggled brands, and non-compliant retail outlets. According to Akram, Pakistan’s message to investors must remain clear: the state stands with legal businesses, supports compliance, and will continue taking firm action against tax evasion and illegal trade.