Top Takeaways:
- Pakistan Tobacco Company (PTC) projects over $150 million in tobacco exports for 2025–26, backed by strong domestic demand and farmer support systems.
- Domestic production far outpaces demand, with 140 million kg grown versus 81.5 million kg purchased by companies; the Pakistan Tobacco Board ensures equitable distribution.
- PTC’s farmer network has expanded, now includes over 10,000 contracted growers with AGRonomic support and financial aid exceeding ₨1 billion, while excise duties remain fully absorbed by manufacturers.
Pakistan Tobacco Company (PTC) is forecasting more than $150 million in tobacco exports in the 2025–26 fiscal year, as it strengthens both international sales and domestic farmer partnerships.
“Tobacco is called a cash crop and directly impacts more than $65 million in economic activity,” PTC Head of Leaf Imaduddin told journalists, emphasizing his company’s multi-faceted support to growers. “Our commitment to farmers goes beyond procurement – we invest in their training, ensure guaranteed purchase of quality leaf and create a sustainable livelihood model.”
Domestic demand from tobacco firms this year is estimated at 81.5 million kg, of which PTC, a subsidiary of British American tobacco, controls roughly a quarter. Yet total production approached 140 million kg, resulting in surplus supply. The Pakistan Tobacco Board steps in to allocate leaf equitably among buyers, protecting the interests of farmers.
PTC has formalized agreements with over 10,000 farmers and employs around 150 technical specialists to oversee everything from seed selection to harvest. It has also advanced more than ₨1 billion in financial assistance—primarily through loans—to growers.
Imaduddin explained that PTC covers the full advance federal excise duty (FED) of ₨390 per kg, clarifying that this cost is borne by manufacturers and not passed onto farmers.
The company’s export ambitions come amid signs of increased global engagement. Since 2019, PTC has secured around $156 million from cigarette exports and currently targets $60 million in new export contracts, although health-based packaging regulations have occasionally triggered export delays.
According to the Pakistan Tobacco Board’s 2025 procurement quota, tobacco output stood at approximately 74.8 million kg—a 14% drop over two years—fueling protests from growers who say the reduction was sudden.
Tobacco cultivation remains centered in four districts across Khyber Pakhtunkhwa—Charsadda, Mardan, Nowshera, and Swabi—yet the sector’s contribution to GDP is less than 1%, even though tobacco excise accounts for about 10–12% of total federal revenues.
Experts caution that heavy excise taxes, along with growing global stigma around tobacco, pose long-term risks. However, PTC’s strategy—anchored in farmer loyalty, assured leaf procurement, and export diversification—helps buffer these challenges for now.
