Staff Reporter
PESHAWAR: Pakistan Tobacco Company (PTC) Regulatory Affairs Manager Hamza Amir Khan has reaffirmed the company’s longstanding commitment to safeguarding farmers’ interests, ensuring full compliance with laws and regulations, and contributing to Pakistan’s economic and financial stability.
He said that PTC, one of the oldest companies operating in Pakistan, has built its relationship with farmers on trust, transparency, and a shared vision of a stronger economic future. The company purchases every kilogram of tobacco it commits to buy, without exception.
According to the company, during recent years of surplus production, PTC purchased significantly more tobacco than its declared demand in line with directives from the Pakistan Tobacco Board and in support of its longstanding relationship with farmers. As a result, the company now holds substantial tobacco stocks for the coming years, which has reduced future demand.
PTC clarified that tobacco prices in Pakistan are higher than those in international markets, while the growing market share of illegal operators has also affected demand.
The company said that one of the main challenges facing farmers is the presence of illegal operators, many of whom have failed to make timely payments for purchased tobacco. Some delay procurement, offer extremely low prices, or refuse to buy tobacco despite issuing contracts, leaving farmers financially vulnerable.
PTC emphasized that farmers’ interests are best protected when they follow the directives and announcements of the Pakistan Tobacco Board, which regulates crop volumes, cultivation decisions, and coordination with the industry.
On taxation, the company stated that only the government has the authority to impose taxes. Any tax levied on tobacco is the responsibility of tobacco companies, not farmers, and therefore has no direct impact on farmers’ income or prices.
The company noted that for every one billion legally sold cigarettes, the province of Khyber Pakhtunkhwa receives approximately PKR 560 million. In contrast, the sale of illicit cigarettes directly harms provincial revenues and the national exchequer.
PTC further stated that Pakistan’s price regulatory framework makes Pakistani tobacco at least one US dollar per kilogram more expensive than competing products in global markets, reducing export competitiveness. According to Ministry of Commerce data, Pakistan’s tobacco exports declined by 29.5 percent in value during the first quarter of the current year compared to the same period last year.
The company added that all its operations are fully documented, audited, and aligned with global best practices, and that it remains open to dialogue to promote facts and enhance understanding of the legal tobacco sector.
