ISLAMABAD: Pakistan’s northern Sost border with China has now emerged as a key smuggling route for acetate tow, the core raw material used in cigarette filters—exposing a new front in the country’s fast-growing illicit cigarette trade.
While the smuggling of illicit cigarettes have been reported from the land routes connected with Iran and Afghanistan previously, a new study claims that the tobacco product, acetate tow are being smuggled from Khunjrab border/Sost border, the only land route between Pakistan and India.
Source also suspect that the some local traders/importers in Gilgit Baltistan may be involved in the business as most of the bilateral trade is carried out by the local traders. The land route has recently being reopened for trade after suspension of trade activities for nearly 70 days of protest by the local traders,
According to an independent study by Alvarez & Marsal (A&M), presented by Nick Hodsman, Global Head of Anti-Illicit Trade Policy at BAT, acetate tow imports in 2023 were sufficient to manufacture 60–80 billion cigarette sticks. However, only 39 billion sticks were produced by legitimate manufacturers (including 2 billion exported), while nearly 41 billion sticks were made by non-duty-paid (DNP) producers, evading taxes entirely.
“Unless acetate tow smuggling is controlled at border points such as Sost and Torkham, Pakistan’s illicit cigarette market will continue to grow unchecked, undermining revenues, legitimate businesses, and public health policy,” Hodsman cautioned.
Federal Board of Revenue (FBR) data further confirms the mismatch, with FED collected on just 37 billion sticks. Experts say this enormous gap underscores how smuggling and misdeclaration of acetate tow are fueling illicit cigarette production at an unprecedented scale.
The government in FY 2024-25 imposed an adjustable FED of PKR 44,000/kg on acetate tow imports to tighten regulation. But instead of curbing the trade, weak enforcement has made smuggling immensely profitable. Official records show imports collapsing from 2.36 kilotons in 2023 to just 0.145 kilotons this fiscal year. Yet, illicit brands remain widely available in the market, indicating that smuggling, particularly through the Sost border with China and the Torkham crossing with Afghanistan, is filling the gap.
Recent seizures by the FBR at Sost highlight how traffickers are now using northern routes to move acetate tow into Pakistan. Analysts warn that this shift in smuggling patterns not only expands the illicit cigarette market but also makes enforcement more complex.
