Islamabad: Federal Minister for Commerce Jam Kamal Khan has committed to addressing the tobacco industry’s concerns by examining proposals related to taxation and enforcement against illicit trade, while advocating for policies that enhance Pakistan’s formal economy and encourage investment.

According to Press Information Department, the commitment was made during a meeting with a delegation from Pakistan Tobacco Company (PTC). The delegation presented budget-related proposals, highlighted challenges facing the tobacco sector, and emphasized the need for measures to curb the illicit cigarette trade. They noted that improved enforcement over the past year had decreased the market share of illicit cigarettes, boosting government revenues and formal sector growth.

PTC urged the government to tackle the influx of smuggled tobacco products, especially via border regions, and to restore a simplified Final Tax Regime for imports. The company stressed the importance of rationalizing tax policies to discourage illicit trade and broaden the tax base by integrating the undocumented sector into the formal economy.

The delegation also cited challenges such as high taxation, increased compliance costs, and the migration of skilled professionals affecting Pakistan’s business community. In response, Minister Jam Kamal Khan recognized these concerns and underscored the need for balanced policies that support both revenue generation and economic growth. He highlighted Pakistan’s strategic potential and the necessity of creating a business-friendly environment to attract investment.

Khan affirmed that the federal government, including the Prime Minister and economic team, is engaging with stakeholders and open to constructive recommendations. He encouraged PTC to formally submit its proposals for consideration by authorities.

The Minister emphasized enhanced coordination among federal and provincial bodies to streamline regulations and reduce business costs. He reiterated the Ministry of Commerce’s commitment to policies that boost exports, industrial growth, and Pakistan’s documented economy. The meeting concluded with an agreement for ongoing dialogue between the government and industry stakeholders to devise practical policies supporting economic growth and curbing illicit trade.