Islamabad, October 21, 2026: ACT Alliance Pakistan welcomes the Federal Board of Revenue’s (FBR) enhanced enforcement against illegal cigarette networks in 2026. Mubashir Akram, Country Director of ACT Alliance, a civil society platform addressing illegal trade, smuggling, counterfeiting, and tax evasion, commended the increased focus on illegal cigarette manufacturing and distribution. He thanked the Prime Minister for his leadership and recognized the Government of Pakistan’s commitment to protecting public revenue, promoting lawful commerce, and combating illegal business activities.
“We appreciate the Prime Minister’s leadership and the government’s commitment to addressing the illegal cigarette trade and other criminal business networks. Continued support for FBR’s enforcement teams will help consolidate these efforts and prevent illegal businesses from regaining a foothold in the market,” Akram said.
A review of public reports from January 1 to August 31, 2026, identified 675 raids in FBR’s Inland Revenue Enforcement Network data. These returns record tobacco-related raids, including those involving raw tobacco, but do not represent the number of criminal prosecutions. The review also found at least four separately reported registered cases related to cigarette manufacturing, machinery violations, or restricted manufacturing inputs. These are reported instances, not a national total. The reviewed sources confirmed no completed prosecutions resulting in convictions and punishments.
“The next area for improvement concerns what follows a raid. Seizures and confiscations should be supported by thorough investigations, timely prosecutions, and penalties wherever due process establishes violations. Enforcement achieves its intended purpose when those responsible for illegal activities are held accountable under the law,” Akram stated.
Industry estimates place Pakistan’s annual cigarette market above 80 billion sticks, with over 50 percent sold illegally. This highlights the significant challenge for the government, legitimate businesses, and the national economy. Ongoing illegal trade undermines fair market conditions, reduces government revenue, and puts compliant manufacturers at a disadvantage despite their investment in regulatory and tax compliance.
“A level playing field is essential for investment confidence. The absence of fair competition discourages expansion by existing foreign investors and deters prospective investors from committing foreign direct investment to Pakistan. Illegal trade and tax evasion must therefore be addressed as national economic challenges, not merely sector-specific violations,” Akram observed.
ACT Alliance called for continued enforcement against illegal cigarette networks and stronger coordination between investigators and prosecutors. Akram emphasized the need for secure custody and transparent disposal of seized materials, careful preservation of evidence, and regular tracking of registered cases through investigation, prosecution, and final adjudication. Improved coordination would also help identify organizers and financiers of illegal cigarette operations where evidence supports their involvement.
“Effective enforcement depends on the quality of legal follow-through. Strengthening investigative and prosecutorial capacity would help translate operational progress into sustainable deterrence, improve compliance, and strengthen confidence in Pakistan’s formal economy,” Akram added.
ACT Alliance urged relevant authorities to review pending cases, address avoidable procedural delays, and pursue those responsible under applicable law. “We hope enforcement will continue and intensify, with legal processes strengthening accordingly. Pending cases should be thoroughly investigated, those responsible prosecuted, and persons found guilty penalized according to the law. Pakistan cannot afford an economic environment where illegal businesses have a competitive advantage over legitimate enterprises,” Akram concluded.
He reiterated that sustained enforcement, effective prosecution, and lawful penalties for those responsible for illegal trade would protect government revenue, bolster investor confidence, and strengthen Pakistan’s documented economy.
