Pakistan’s tobacco control efforts face a critical setback as the government, reportedly under pressure from cigarette manufacturers, considers rolling back key tax policies that had finally begun to curb tobacco use. The tobacco industry is lobbying for a reduction in the Federal Excise Duty (FED) and the introduction of a third-tier, ultra-low-cost cigarette category—measures that would significantly lower cigarette prices and increase their accessibility, particularly for youth and low-income populations.
If these proposals are approved, they would reverse the health and revenue gains achieved over the past year, making cigarettes more affordable and undermining efforts to reduce smoking-related deaths, which currently exceed 160,000 annually in Pakistan. Alarming reports suggest these policy rollbacks are being pitched to the International Monetary Fund (IMF), whose endorsement would cast serious doubt on its commitment to Pakistan’s long-term public health goals.
Globally, the trend is to raise tobacco taxes as a means of reducing smoking. The Philippines provides a compelling example: under its Sin Tax Reform, excise duties were significantly increased, leading to a 51% drop in per capita cigarette consumption—from 53.6 packs in 2010 to 26.3 in 2022. Half of the revenue generated was funneled into healthcare, transforming a public health liability into a funding source for prevention and treatment.
In stark contrast, Pakistan—where cigarette prices are already among the lowest in the region—is considering a tax reduction. This directly contradicts the World Health Organization’s recommendation that at least 70% of the retail price of cigarettes should come from taxes. By moving in the opposite direction, Pakistan risks rising smoking rates, increased healthcare costs, and an exacerbated health crisis.
This moment demands urgent action from the IMF. Economic stabilization should not come at the cost of public health. Enabling the tobacco industry’s regressive agenda would not only endanger countless lives but also strain Pakistan’s already overburdened healthcare system. The IMF must ensure that its policies support, rather than undermine, sustainable and health-conscious economic reforms.
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