ISLAMABAD, FEB 12 /DNA/ – Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting today at the Finance Division with a delegation of British American Tobacco (BAT) led by Ms. Pascale Muelemeester, Regional Director, Asia Pacific, Middle East & Africa, along with senior executive members of British American Tobacco (BAT) and Pakistan Tobacco Company (PTC).
In his opening remarks, the Finance Minister underscored that Pakistan’s ongoing structural reform agenda, undertaken under the leadership of the Prime Minister, is aimed at breaking the historical boom-and-bust cycles through fiscal discipline, broadening of the tax base, and strengthened enforcement and compliance. He emphasized that fiscal sustainability requires equitable taxation, improved compliance across all sectors, and decisive action to curb leakages and illicit activity.
Highlighting progress on tax administration reforms, he noted that the Government’s tax transformation, anchored in reforms to people, processes, and technology, has strengthened enforcement mechanisms through AI-led CRM systems, AI-led production monitoring, and track-and-trace initiatives. He shared that enhanced enforcement across sectors including sugar, cement, tobacco, textiles, and beverages has resulted in measurable improvements in compliance and revenue collection.
The delegation was briefed on ongoing enforcement actions against illicit cigarette manufacturing and smuggling. It was shared that record seizures have been made during the current year, with coordinated operations involving customs, inland revenue, provincial authorities, and dedicated enforcement units to curb the illegal trade of both finished products and raw materials.
The BAT delegation appreciated the Government’s enforcement efforts and raised concerns regarding excise stability, the widening price differential between formal and illicit products, and the export competitiveness of Pakistani tobacco. The delegation emphasized that policy predictability and a stable excise regime would support formal sector growth, strengthen revenue generation, and enable long-term investment planning.
The delegation also highlighted export opportunities, particularly in the Kingdom of Saudi Arabia and other international markets, and underscored the importance of competitive crop pricing and regulatory alignment to enable Pakistan to expand its footprint in global tobacco exports.
Responding to these concerns, the Finance Minister noted that sectoral reviews are underway to assess policy measures and address anomalies where required, while ensuring alignment with broader fiscal objectives. He reiterated that revenue mobilization remains critical for fiscal stability; however, the Government remains open to constructive engagement to ensure policies are effective and sustainable.
On the macroeconomic front, the Minister highlighted significant progress over the past two years, including improved fiscal indicators, declining inflation, strengthened foreign exchange reserves, and enhanced external stability. He emphasized that maintaining macroeconomic discipline is essential to providing a predictable and stable environment for both domestic and foreign investors.
The Minister further stressed that Pakistan’s long-term growth strategy is anchored in export expansion. He emphasized the importance of enhancing export competitiveness and facilitating sectors with strong export potential, including tobacco and related value-added products.
The meeting concluded with both sides agreeing to continue constructive engagement on enforcement, taxation, and competitiveness issues to ensure policy coherence and sustainable sectoral development.
