Policy engagement and market formalisation have become pivotal themes in Pakistan’s tobacco industry, especially in response to the growing threat of illicit trade. In 2024, government authorities, including the Federal Board of Revenue (FBR), intensified efforts to implement the Track and Trace System (TTS), aimed at curbing tax evasion and bringing transparency to cigarette manufacturing and distribution.
While Pakistan has a foundation in raw tobacco exports and has shown some growth in finished cigarette exports, realising the full export potential faces considerable hurdles. The dominance of the illicit trade within the country, stringent international regulations, and bureaucratic challenges need to be addressed.
Cigarette companies in Pakistan have a significant opportunity to innovate through the development and expansion of reduced-harm products, including heated tobacco, nicotine pouches, and vape alternatives. As health awareness grows and regulatory pressure on traditional smoking increases, there is a clear shift, especially amongst the urban youth, toward less harmful alternatives.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in Pakistan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Cigarettes
RETAIL SALES OF DUTY PAID CIGARETTES The definition of cigarettes for the purposes of this study is duty-paid, machine manufactured white-stick products. This does not exclude brands of cigarettes that do not use white paper but it is designed to exclude the volume of non-machine manufactured products such as bidis/beedis (India) and papirosy (Russia), and other smoking products made with tobacco but that either do not resemble cigarettes as recognised in the US or Europe, or those that are not machine manufactured. The exclusion of these products is intended to give a more accurate picture of the "true" market for cigarettes and cigars which has been distorted in official statistics and published reports because of the inclusion of hybrid products. NB Please note that due to its central importance and integration into the industry mainstream, Indonesia’s market data does include hand-rolled kreteks DUTY-FREE sales are excluded from retail sales, as are herbal cigarettes. ILLICIT TRADE CIGARETTES Not included in retail sales, but split out separately in volume terms only. Defined as non-duty paid cigarettes (includes smuggled & counterfeit/fake products combined). Legitimate cross-border sales are considered duty-paid. Sales arising from a foreign national purchasing cheaper cigarettes in bulk in a neighbouring country for personal use and exported back are attributed to the country where the purchase is made (e.g. bulk cigarette sales by British nationals in France are attributed to France).
See all of our definitionsThis report originates from Passport, our Cigarettes research and analysis database.
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