Cigarette Smuggling Industry in Pakistan in 2012

Pakistan Tobacco Company (PTC) stated in their annual report that 18.4 percent of total cigarette sales in Pakistan in 2012 were either smuggled or were counterfeit cigarettes.

The black market tobacco trade created over $1.9 Million (2 Billion Pakistani Rupee) in losses to the legitimate tobacco industry in Pakistan.

Between 2007 and 2012, the illicit trade increased over 60 percent.

Company officials claim that the high tax rate in Pakistan on cigarettes is the cause of the smuggling. The tax on a pack of cigarettes if sold in a retail store ranges from 68.5 percent to 81 percent.

Source:  Faroq Baloch, “Spreading like fire: One in four cigarettes sold is smuggled or counterfeit,” Express Tribune, September 1, 2013.