Pakistan Hits Rs298 Billion in Tobacco Tax Revenue for FY2025, But WHO Flags Weak Regulation
ISLAMABAD, June 24, 2025 — Pakistan collected a record Rs298 billion (approximately $1.1 billion) in tobacco taxes during 2024, according to the newly released Global Tobacco Epidemic Report 2025 by the World Health Organization (WHO). This achievement is being hailed as a key milestone in Pakistan’s ongoing efforts to curb tobacco use through aggressive fiscal policy.
The rise in revenue comes on the back of landmark tax reforms, including the tripling of excise duty on cigarettes, a doubling of the minimum price per pack, and an overall 28% drop in legal cigarette production. These changes, implemented in close technical cooperation with the Federal Board of Revenue (FBR) and the WHO, not only curbed cigarette availability but also delivered a significant boost to public coffers.
WHO Acknowledges Fiscal Success but Calls for Broader Action
While praising Pakistan’s fiscal measures, the WHO warned that the country still lags in implementing comprehensive tobacco control policies. Pakistan remains among 40 countries globally that have yet to fully adopt a single MPOWER measure — the WHO’s six-pronged framework for controlling tobacco use. These measures include:
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Monitoring tobacco use and prevention policies
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Protecting people from tobacco smoke
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Offering help to quit tobacco use
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Warning about the dangers of tobacco
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Enforcing bans on tobacco advertising, promotion, and sponsorship
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Raising taxes on tobacco
“Raising tobacco taxes is one of the most effective tools we have to save lives and generate revenue,” said Dr. Tedros Adhanom Ghebreyesus, WHO Director-General. “But without comprehensive policies in place, the gains made through taxation alone may be undermined.”
Regional Comparisons: Pakistan Still Behind Peers
Compared to regional neighbors like India, Bangladesh, and Sri Lanka, Pakistan’s broader tobacco control efforts appear underdeveloped. India, for example, mandates graphic health warnings on 85% of cigarette packaging, has banned most forms of tobacco advertising, and runs large-scale public awareness campaigns — measures that Pakistan has yet to implement in full.
E-Cigarettes and Emerging Products: A Growing Blind Spot
The WHO report also drew attention to emerging nicotine products such as e-cigarettes and nicotine pouches, which are growing in popularity among youth in many countries. In Pakistan, however, these products remain largely unregulated, raising concerns about a potential new front in the tobacco epidemic.
Health experts have urged the government to move swiftly to regulate new tobacco and nicotine delivery systems, citing global trends that show their increasing appeal to younger demographics.
The Road Ahead
Pakistan’s success in raising tobacco taxes represents a major step forward in both public health and revenue generation. But health advocates warn that this momentum must be used to implement broader anti-tobacco measures, especially as the industry diversifies its offerings and tactics.
“Fiscal reforms are a powerful start,” said a WHO policy advisor. “But without robust advertising bans, quit support, and public education, Pakistan risks falling short of truly protecting its citizens — especially the youth.”
