It is no secret that Pakistan is a net exporter of raw tobacco, with its export portfolio having over 43 countries and generating around $65 million. However, these past few years Pakistan has also managed to export tobacco in its finished form, with cigarettes now making up 20% of the tobacco export mix. What does that say about/mean for the tobacco industry of Pakistan?
The history of tobacco production in Pakistan
Tobacco trade from the subcontinent can be traced back to the Imperial Tobacco Company of British India, which became operational in South Asia in 1905. This trade was taken over by Pakistan Tobacco Company (PTC), as a subsidiary of the British American Tobacco (BAT), in 1947, right after Pakistan’s independence. Now the tobacco industry comprises two multinational cigarette manufacturers, namely Pakistan Tobacco Company Limited (PAKL) and Philip Morris Pakistan Ltd (PMPK), that control nearly 60% of the country’s tobacco consumption market share, while the rest is split between more than 50 smaller local companies. It can be safely asserted that Pakistan has been a prominent exporter, as well as consumer of tobacco since the country came into existence. However, the growth of tobacco in the region has a different story entirely.
The importance of the tobacco industry is reflected in the fact that from no tobacco production at all in 1947, Pakistan accelerated to becoming a self-sustinent producer of tobacco by 1968. How did we get here? Long story short, efforts to grow tobacco began in 1948, with an experimental 20 acre farm, which soon uncovered Pakistan’s high potential for growing tobacco, especially Khyber Pakhtunkhwa’s (KP) ideal land and climate. Fast forward to 1968, Pakistan was no longer a net-importer of tobacco. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
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