Pakistan’s Federal Board of Revenue (FBR) has sealed the manufacturing units of M/s Indus Tobacco Company and M/s Souvenir Tobacco Company in Mardan for “producing and circulating non-duty-paid and non–track-and-trace-stamp (TTS) cigarettes,” a move described by The Dawn as a historic enforcement action against politically connected operators.

During the raids authorities seized 62 cartons of illegal cigarettes and locked the companies’ manufacturing machinery. Officials said the crackdown is aimed at curbing the growing illicit cigarette market, which is estimated to cost Pakistan Rs. 250–300 billion ($900 million to $1.1 billion) in lost revenue each year.

The operations were carried out by the Directorate of Intelligence & Investigation–IR Peshawar together with officers from the Regional Tax Office Peshawar, despite resistance from armed personnel allegedly linked to prominent local politicians. Pakistan’s Business Recorder reported the factory closures occurred “despite extraordinary pressure by a prominent political personality,” and included “apparent threats to the FBR officials.”

The action is part of a multi-layered national enforcement plan, backed by the Prime Minister and the Pakistan Army, to dismantle illegal cigarette production, strengthen monitoring systems, and disrupt illicit supply chains. More than 200 FBR monitors and 120 Pakistan Rangers personnel have been deployed nationwide to oversee production, ensure lawful removal of goods, and prevent illicit manufacturing at Green Leaf Threshing units.

The FBR stressed that no political pressure would deter enforcement of tax laws, highlighting the unprecedented sealing of factories that had previously been shielded by political influence.

This article was adapted from an original report published on tobaccoreporter.com. All rights belong to the original publisher.