Big Tobacco’s Predictable Prebudget Tantrums in Pakistan

Extract

Phillips Morris International (PMI), which has the second largest (20%) market share of cigarettes in Pakistan, is currently funding a media campaign: #AwazUthaoMulkBachao #44Billion4Pakistan,¹ asking the public to sign a pledge and petition to the policy makers to save 44 Billion Pakistani Rupees (PKR) supposedly lost to illicit tobacco trade every year. Clips from the campaign have been shown on television channels, a dedicated YouTube channel and shared on social media platforms.^2,3 This campaign continues a pattern of increased tobacco industry (TI) media activity in the lead up to annual budget debates in the National Assembly of Pakistan,^4–7 with an ulterior motive to undermine tax increases on tobacco products in the annual budget by influencing the public narrative and pressurizing policy makers.

The campaign attempts to link estimates of Pakistan’s lost revenue due to illicit tobacco trade with areas of national importance to Pakistan, arguing that curbing illicit trade would translate into better health, education, and enhanced energy production and even increased funds to tackle COVID-19. For a developing economy like Pakistan such arguments can weigh in heavily on major policy decisions. The effects of the current media campaign in the months preceding the national assembly budget debate can be seen in the recent national budget, approved in June 2020, which shows no increase in taxes on locally manufactured cigarettes, already one of the cheapest across the globe, costing less than one US dollar/pack. Tobacco taxes in Pakistan have not increased in the last two national annual budgets despite being recommended by the National Ministry of Health Services Regulations and Coordination.⁸