Smoking sales soar as Pakistan’s tobacco giants report PKR 276 billion in revenue

Pakistan’s two listed tobacco companies reported selling a whopping PKR 276 billion worth of cigarettes in the first nine months of 2024, which is enough to make any smoker wonder: "Just how much of that was my share?"

For instance, if a persons spends PKR 150 on cigarettes per day, that would be PKR 4,500/month and PKR 54,000 per year.

In 2022, an estimated 25.4 million people (20.7 million males and 4.6 million females) aged 15 years and older were tobacco product users in Pakistan. This positions the country as the 7th globally and the 1st in the WHO Eastern Mediterranean Region in terms of number of tobacco users.

By this calculation, an smoker spends an average of PKR 40 on cigarettes per day.

Pakistan Tobacco Company (PTC) and Philip Morris International (PMI) Pakistan unveiled their sales figures, and they were smoking hot.

PMI reported sales of PKR 20.49 billion for the nine-month period ending September 30, 2024. Meanwhile, PTC accounted for a monumental PKR 255.54 billion in sales during the same timeframe. A little portion of their sales comprises of exports though.

Both companies, listed on the Pakistan Stock Exchange (PSX), significantly contribute to the national exchequer through duties and taxes while providing employment across the supply chain.

Annual sales are expected to be much higher. When considering smuggled cigarettes, as well as cigarettes produced by undocumented manufacturers, the actual number of cigarettes consumed could potentially double.

The heart of the issue lies not in the revenue generated but in the enormous health and economic costs borne by citizens.

Despite warnings from health and social organizations about the dire consequences of smoking, the government remains focused on revenue generation rather than public welfare.

Even if these companies contribute approximately half of their sales revenue in taxes, the financial and health benefits of banning cigarettes far outweigh the loss of excise duties.

Cigarettes, deemed non-essential, primarily contribute to federal excise duty, a tax category intended for luxury or harmful items.

Eliminating cigarettes would not significantly affect national revenue but would safeguard public health and redirect resources towards constructive economic activities.