ISLAMABAD: The ACT Alliance Pakistan (Think Tank) Thursday urged the Federal Board of Revenue (FBR) to ensure prosecution of those involved in the illegal cigarette trade, stressing that raids and seizures must be followed by effective investigations and legal action.
In a statement issued on Thursday, Mubashir Akram, Country Director of ACT Alliance, welcomed the FBR’s intensified enforcement against illegal cigarette networks in 2026 and appreciated the government’s commitment to protecting revenue and curbing tax evasion.
A review of public reports from January 1 to August 31, 2026, identified 675 raids recorded in the FBR’s Inland Revenue Enforcement Network data involving tobacco-related activities, including raw tobacco. However, these figures do not represent criminal prosecutions.
The review also identified at least four separately reported cases involving cigarette manufacturing, machinery violations or restricted manufacturing inputs. These are not a national total, while the reviewed sources confirmed no completed prosecutions resulting in convictions and punishments.
Akram said seizures and confiscations should be backed by thorough investigations, timely prosecutions and penalties wherever violations were established through due process.
Industry estimates suggest that Pakistan’s annual cigarette market exceeds 80 billion sticks, with more than 50 percent of sales attributed to the illegal market. According to ACT Alliance, illegal trade undermines fair competition, deprives the government of revenue and places compliant manufacturers at a disadvantage.
Akram observed that the absence of a level playing field could discourage existing foreign investors from expanding their operations and deter prospective investors from making foreign direct investment in Pakistan.
ACT Alliance called for stronger coordination between investigators and prosecutors, preservation of evidence, secure custody and transparent disposal of seized materials, and regular monitoring of registered cases through investigation, prosecution and final adjudication.
The alliance also urged the authorities to review pending cases, address procedural delays and strengthen investigative and prosecutorial capacity to ensure that those responsible for illegal cigarette operations were held accountable under the law.
Akram said sustained enforcement and effective prosecution were essential to protecting government revenue, improving compliance and strengthening investor confidence in Pakistan’s formal economy.
Copyright Business Recorder, 2026