Tobacco use in Pakistan is not just a public health concern, it is a fiscal crisis demanding urgent re-evaluation of cigarette taxation especially as it fuels youth initiation. Every year, it claims approximately 164,000 lives and drains nearly Rs 700 billion from the economy through healthcare and lost productivity.

Despite this, cigarette taxes have remained untouched since February 2023. Policymakers continue to hesitate at a time when swift and evidence-based action is needed most, especially to protect the youth from early addiction of tobacco consumption.

The 2025–26 federal budget with a total outlay of Rs 17.57 trillion reflects continued fiscal restraint, with health infrastructure development bearing the brunt. The combined budget for the Ministry of Health, National Health Services Regulation & Coordination was cut nearly 16 percent, declining from Rs 54.87 billion in FY2024-25 to just Rs 46.10 billion and the Public Sector Development Programme (PSDP) allocation shrank from Rs 27 billion to Rs 14.34 billion, a staggering 47 percent real-term cut. Meanwhile, defence outlay surged to Rs 2.55 trillion, which highlights an ongoing prioritisation of security over social development. This stark contrast underscores the need for an alternative sustainable revenue streams like tobacco taxation.

In this fiscal context, tobacco control remains sidelined. Our two-tier Federal Excise Duty (FED) remains unchanged with PKR 330 per pack applied on premium brands and PKR 101 on economy brands. As inflation and income have risen, this makes cigarettes more........

© Business Recorder