FROM CLAIMS TO EVIDENCE: The Extent of Illicit Trade of Cigarettes in Pakistan

Pakistan faces an ongoing debate regarding the illicit tobacco trade. Tobacco industry leaders assert that high taxes promote illegal trade because of insufficient tax enforcement. This argument has persistently been used to make a case for reducing the excise tax rate on cigarettes. This controversy has intensified during the last few months, after a retailers’ survey report1 was launched in February 2025.