Islamabad : The Action to Counter Illicit Trade (ACT) Alliance Pakistan has welcomed the government’s ongoing crackdown on the illegal tobacco industry, saying sustained enforcement is vital to protect revenue, formal businesses and investor confidence.
In a statement on Tuesday, Country Director Mubashir Akram praised the government, Prime Minister Shehbaz Sharif and the Federal Board of Revenue for recent action against illegal cigarette manufacturing, non-duty-paid products, smuggled brands and violations of the Track and Trace System.
“The illegal tobacco industry costs Pakistan more than Rs300bn in lost tax revenue every year,” Akram said. “The real scale of the trade may be three to four times larger, given its links to manufacturing, transport, warehousing, wholesale and retail networks.”
He described the trade as “organised economic sabotage”, warning that every untaxed cigarette pack undermined the exchequer, weakened legitimate businesses and eroded public trust in enforcement.
Akram said the Prime Minister and FBR deserved credit for pushing enforcement in a market where illegal operators had long operated with impunity. “The challenge now is continuity. Enforcement must not come in waves. It must become a permanent discipline of the state,” he said. He called for similar action across the wider illegal economy, including smuggling, counterfeiting, under-invoicing and tax evasion in other sectors. Consistent action, he argued, could recover “tens of billions of dollars” in tax revenue over time, improve documentation and bring capital back into the formal economy.
The campaign, he added, was also critical for attracting investment. “Investors want to know whether the state can enforce rules and protect compliant businesses. If Pakistan rewards legality, investors will see it as a serious market. If illegal operators can block enforcement, that sends a warning,” he said.
Akram voiced concern over reports that illegal operators might try to pressure FBR and law enforcement officials to halt operations. He urged the government to shield officers from intimidation and give them full institutional and political backing.
ACT Alliance Pakistan called for continued action against illegal factories, undeclared processing units, non-TTS products, smuggled brands, illegal warehouses and retailers selling non-duty-paid cigarettes. It also urged closer coordination between the FBR, Pakistan Customs, Inland Revenue, provincial administrations, police, Rangers and district authorities.
“Pakistan loses trillions of rupees annually to the illegal economy,” Akram said. “The government must not step back. It must move forward with greater force, better coordination and complete resolve.”
