In a recent episode of the Podcast Express PK Press Club, in collaboration with #BehtareenPakistan, experts have warned that Pakistan loses more than 300 billion rupees per year due to uncontrolled trade in illicit cigarettes.
The conversation underlined how tax evasion, the low application of the track and trace system and the regulatory gaps paralyze both public revenues and health guarantees.
Speaking on the Podcast, CEO of the Institute for Public Opinion Research (IPOR), Junaid Iqbal, said: “It is not only a health problem – it is an economic crisis.
When more than 40% of the cigarette market does not see, the state loses the capacity to finance vital services. The smugglers fill the gap while legitimate companies suffer. »»
The panelists revealed that the manufacturers of illegal cigarettes exploit the system by avoiding federal excise duties and producing below the legal price threshold.
These non-taxed products are then sold at a lower cost, undercoating legal manufacturers and contributing to a shaded economy that prospered on regulatory inaction.
The podcast also explored the wider impacts of illicit trade. Experts have stressed that it is not just a income problem – this also has disastrous implications for public health. Consumers of illegal cigarettes are often exposed to unregulated and potentially more harmful products.
In response to these challenges, the panel pleaded for the urgent implementation of a fully functional track and trace system to digitally monitor the production and distribution of cigarettes. They also called for more severe sanctions for offenders and more transparent monitoring of the tax authorities.
Iqbal stressed: “There must be a serious political will to act. The solution does not only concern the application – it involves protecting the economy of Pakistan from systemic exploitation. ”
The podcast ended with a consensus according to which only a coordinated approach – combination of technology, regulations and conscience – can dismantle illegal trade and recover lost income for the nation.
