In a decisive move to protect national revenue and reinforce economic transparency, the Government of Pakistan has stepped up its crackdown on illicit trade and unauthorized foreign organizations, with a particular focus on the tobacco industry and international NGOs operating without proper approvals.
Authorities estimate that the country loses around PKR 415 billion annually due to the widespread circulation of unregulated and untaxed cigarettes. While the formal tobacco sector contributes nearly PKR 270 billion in annual taxes—making up 98% of the industry’s tax revenue—its market share has declined to just 46%, as illegal operators continue to expand.
According to Fawad Khan, spokesperson for Mustehkam Pakistan, a local advocacy group focused on good governance, illicit trade undermines national development. “This is not just an economic issue—it’s a barrier to building a transparent and equitable future. Every rupee lost could have been invested in public services like education, healthcare, and infrastructure,” he said. Khan also emphasized the importance of foreign collaboration adhering strictly to local laws, stating that no entity should exploit loopholes under the guise of advocacy.
The government’s scrutiny has also extended to the activities of international non-governmental organisations (INGOs) operating within Pakistan’s health and policy sectors. The Ministry of Interior has ordered the immediate suspension of operations by two INGOs—Campaign for Tobacco-Free Kids and Vital Strategies—for non-compliance with registration and legal requirements.
Despite an explicit order in early 2024 to cease their activities, the INGOs reportedly continued to operate, transferring funds to local organizations and interacting with policymakers without formal approval from the Ministry of Interior, the Economic Affairs Division, or the Securities and Exchange Commission of Pakistan.
In a further enforcement step, the Ministry has instructed the State Bank of Pakistan to freeze all bank accounts associated with these INGOs. This underscores the government’s determination to uphold the rule of law and ensure accountability in all sectors.
While reaffirming its willingness to work with international partners, Pakistan has made it clear that all foreign and domestic entities must operate with full transparency and comply with national regulations to support a fair, lawful, and stable economic environment.
