WHO challenges illicit tobacco trade numbers in Pakistan

ISLAMABAD: The World Health Organization (WHO) has contradicted claims by multinational tobacco companies regarding the illicit cigarette trade, revealing that the actual figure in Pakistan stands at 23 per cent.

“Overall, the illicit trade of cigarettes in Pakistan accounted for 23.1 per cent of the total trade. Locally produced cigarettes without a stamp of the tax authority are considered illicit products and account for 10.4 per cent of the total number of packs,” said WHO study titled “Study on Incidence of Illicit trade of cigarettes in Pakistan: A case study for Islamabad Capital Territory”.

It further said that, in terms of the number of packs with counterfeit tax stamps as a percentage of total packs, it is 1.9 per cent, and smuggled cigarettes account for 10.7 per cent of the total consumption.

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In the past, there had been several studies on the volume of illicit trade in Pakistan but they were conducted before the Track and Trace System was enforced in the country (July 2022). These studies found that illicit trade market in Pakistan ranges from 9 to 17 per cent but they did not estimate the extent of the counterfeit issue, according to the WHO.

 “The most effective way to reduce tobacco consumption is to increase the price of tobacco products through higher taxes. In Pakistan, the cigarette industry claims that higher taxes trigger illicit trade, claiming smokers do not quit and opt for non-duty-paid cigarettes because they cost less,” the study said.

The world’s top health body emphasized that the prices of tobacco products in Pakistan should be increased by taxing the tobacco industry.