Study Unearths Widespread Non-compliance Of Track & Trace Policy In Tobacco Industry

A research study conducted by the Institute for Public Opinion Research (IPOR) has unearthed widespread non-compliance of Track and Trace Policy in Tobacco industry of the country, inflicting a colossal loss of around Rs. 300 billion to national exchequer on annual basis

PESHAWAR, (UrduPoint / Pakistan Point News - 14th May, 2025) A research study conducted by the Institute for Public Opinion Research (IPOR) has unearthed widespread non-compliance of Track and Trace Policy in Tobacco industry of the country, inflicting a colossal loss of around Rs. 300 billion to national exchequer on annual basis.

Tariq Junaid, Executive Director IPOR Consulting while briefing newsmen about findings of the research study titled as `Unveiling the Gaps, A nationwide market assessment of Track and Trace Compliance in Pakistan Tobacco Industry’, said that in Pakistan, around 413 cigarette brands were found in markets out of which only 19 were compliant to Track and Trace policy.

The study surveyed 1,520 retail outlets across 19 districts of the country and identified over 413 cigarette brands available in Pakistan.

Among these, only 19 brands were fully compliant with the Track and Trace System (TTS), 13 were partially compliant, 95 featured the Graphical Health Warning (GHW), and 286 lacked both the tax stamp and the GHW, Tariq shared with newsmen here on Wednesday at Peshawar Press Club.

The study also revealed that more than 54 percent of cigarette brands available at points of sale, were found to be non-compliant. Among these non-compliant brands, 45 percent were smuggled brands, while 55% were locally manufactured duty not paid brands.

Additionally, the study found that 332 brands were being sold below the legal minimum price of PKR 162.25, with some available for as little as PKR 40. This rampant violation of minimum price results in significant revenue losses for the government.

“The high prevalence of non-compliant and smuggled cigarettes deprives the government of much-needed revenue of around Rs. 300 billion.” Junaid claimed.

The study also found that non-compliance was more prevalent in rural areas (58 percent) compared to urban areas (49 percent). This underscores the need for targeted enforcement efforts in rural markets where illicit products are more prevalent.

While 77 percent of retailers surveyed were aware of the TTS system, 60% reported facing no issues in selling non-compliant brands to consumers. This indicates a lack of effective point-of-sale enforcement, which is crucial for deterring the sale of illicit tobacco products.

Executive Director IPOR said there are around 750,000 selling points of tobacco in Pakistan and there is a need of a comprehensive monitoring programme to ensure implementation of the policy.

IPOR calls on the government to strengthen enforcement efforts and to impose existing penalties. The organization also urges tobacco manufacturers and retailers to play their part in ensuring compliance with all relevant regulations.

“The situation needs immediate redressal to curb this revenue loss through strict point-of-sale enforcement,” he added.

When asked about the use of e-cigarettes, vaping, and VELOS, Junaid stated that these are relatively new products and emphasized that a separate study would be conducted to assess their utilization and marketing trends.