Pakistan’s economic stability hinges significantly on its ability to curb tax evasion and illicit trade. One of the initiatives in this regard is the Federal Board of Revenue’s (FBR) Track and Trace System (TTS). Introduced in 2021, the TTS was envisioned as a technological leap forward, integrating digital monitoring to ensure compliance with tax and regulatory frameworks. By July 2022, the sale of unstamped cigarette packs was declared illegal. Yet, enforcement at the retail level has been inconsistent, as the Institute of Public Opinion and Research (IPOR) study demonstrates.

A recent study conducted by IPOR reveals that the system, while promising, has faced significant implementation challenges, raising concerns about its overall effectiveness. The TTS mandates manufacturers to use digital stamps that serve as unique identifiers on products such as cigarettes, cement, sugar, and fertilizers. These stamps aim to ensure tax payment, track the supply chain, and prevent illegal trade. Since mid-2022, the sale of products without these stamps has been prohibited, particularly targeting the tobacco........

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