Illegal cigarette trade in the country is likely to cost the national exchequer Rs.70 billion this year.
According to details, illegal cigarette trade is going on in Pakistan and law enforcement agencies seem to be failing to stop it. According to the latest reports, the consumption of illegal cigarettes in Pakistan is 37 percent. The sale of illegal cigarettes is increasing at an exponential rate by 6% every passing year and there are several reasons for this increase.
The prices of cigarettes have been increasing for the last 10 years in Pakistan, the price increase is due to tax imposition by the governments on cigarettes, this hike in price creates opportunities for profiteers to import cigarettes by other illegal means that are cheaper and carry more profit margin than the local manufacturers.
According to a report by Nelson Research, 86 percent of brands manufactured by local cigarette manufacturers are sold according to the price list issued by the government of Pakistan.