Tobacco use in Pakistan causes around 164,000 deaths annually and results in an economic loss exceeding Rs. 700 billion ($2.5 billion), according to the World Health Organization (WHO).
WHO has called for an immediate increase in tobacco taxes to reduce consumption and ease the burden on the health system and economy.
It said that all tobacco products are equally harmful and especially endanger children and teenagers. It warned that without stronger control measures, Pakistan’s public health and economic goals, including the Sustainable Development Goals (SDGs), remain at risk.
In 2023, a tax hike led to a 19.2 percent decline in tobacco use and a 66 percent increase in Federal Excise Duty (FED) revenue, rising from Rs. 142 billion to Rs. 237 billion. Despite these gains, FED rates have not increased since February 2023, and current tax levels remain below the WHO’s 75 percent retail price benchmark.
WHO said it continues to support Pakistan’s Ministry of Health and Federal Board of Revenue on tobacco taxation and regulatory enforcement.