ISLAMABAD: The success of Track & Trace System in Pakistan will depend upon the implementation of the system in its true letter and spirit across the board coupled with a sustained enforcement drive.

This was stated by Mona Iskandarani, Area Head of Legal & External Affairs, Asia Pacific, Middle East and Africa (WEST) at BAT Group during a media briefing session on the efficacy of the Track and Trace System in the tobacco sector, organized by the Pakistan Tobacco Company (PTC).

During the session, the representatives of the PTC shed light on the implementation status of Track & Trace in Pakistan and highlighted that delay in implementation and enforcement across the board was causing significant loss of volume for the legitimate industry.

Ms Mona added that in order to ensure that the quantum of illicit trade is controlled within the country; it must be coupled with strong enforcement and fiscal measures.

“We acknowledge the recent enforcement initiatives undertaken by the Federal Board of Revenue (FBR) in Pakistan but we need sustained enforcement efforts across the supply chain to curb the menace of illicit cigarette trade in Pakistan,” she concluded.

Speaking to the media, officials of the PTC stated that the illicit manufacturers are openly flouting laws by using counterfeit stamps, by placing stamps over the polypropylene wrapping on a pack of cigarettes.

Some players are even applying stamps on cigarette packs manually, which defeats the whole purpose of a Track & Trace System in Pakistan, which is to monitor production volumes. Illicit cigarette packs without a Graphical Health Warning and without Track & Trace stamps are being sold in the market openly.

Majority of Duty Not Paid (DNP) cigarettes are being manufactured in AJK and strict enforcement measures need to be taken at entry and exit points of AJK to ensure that no tax evaded cigarettes make their way into the country.

Copyright Business Recorder, 2023