A costly addiction
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Pakistan is paying a steep price for tobacco consumption. Each year, tobacco claims 164,000 lives and drains the economy of nearly Rs700 billion in healthcare costs and productivity losses. But, no matter how regrettable these numbers are, tobacco also contributes significantly to the national exchequer through taxes, creating a moral and fiscal dilemma for policymakers.
This contradiction lies at the heart of Pakistan's tobacco control struggle. On one hand, increased taxation is the most effective measure to reduce tobacco consumption -— especially among youth and low-income groups — and to prevent the onset of lifelong addiction. On the other hand, the tobacco industry remains one of the top contributors to FBR, particularly through Federal Excise Duty.
This makes the government understandably cautious about disrupting a major source of income amid financial constraints. However, the revenue generated from tobacco — while substantial — is dwarfed by the long-term economic toll of tobacco-related diseases. From cancer and heart disease to chronic respiratory illnesses, the burden on our already struggling public health system is immense.
As World No Tobacco Day approaches on May 31, WHO has rightly urged Pakistan to adopt urgent tax reforms that prioritise public health. This doesn't mean an overnight collapse of the industry, rather a structured increase in taxes across all tobacco products, without exemptions or loopholes. Gradual yet decisive reforms can reduce consumption, continue to generate revenue in the short term, and significantly reduce long-term health costs.
The goal should not be to kill an industry overnight, but to transition away from dependence on one that thrives off addiction. Part of the revenue generated through higher tobacco taxes can and should be ring-fenced for health and education spending, especially tobacco prevention programmes targeting youth.
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