Tobacco Action Committee KP says unresolved export duties, quota issues, and unsold stock threaten farmers, businesses, and foreign exchange earnings.
ISLAMABAD: Tobacco Action Committee Khyber Pakhtunkhwa Chairman Irshad Khan has urged the federal government and the Federal Board of Revenue (FBR) to immediately address what he described as serious challenges facing Pakistan’s tobacco sector, warning that failure to act could endanger the livelihoods of thousands of farmers and traders.
Speaking at a press conference at the National Press Club in Islamabad alongside representatives of tobacco growers, Khan said heavy Federal Excise Duty (FED) and other restrictions on tobacco exports had made business operations increasingly difficult for exporters.
He called for the introduction of alternative mechanisms such as bank guarantees or post-dated cheques to facilitate exports, increase overseas sales, and help the country earn valuable foreign exchange.
Khan said last year’s tobacco crop remains unsold while a new crop is about to enter the market, leaving farmers under severe financial pressure. He added that shortcomings in Tobacco Board policies, flaws in the quota system, fewer purchasing agreements, and insufficient price increases have further aggravated growers’ difficulties.
Farmer representatives urged the government, the FBR, and the Tobacco Board to formulate a joint strategy to resolve the issues. They warned that continued inaction could affect thousands of families and negatively impact Pakistan’s exports and foreign exchange reserves.
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