Pak loses order to BD

FE REPORT | Published: November 09, 2024 00:22:35

Pakistan recently missed out on a US$20.5 million worth of cigarette-export order to Sudan following delays in regulatory approvals, Pakistani media reported, yielding Bangladesh an opportunity.
Such bureaucratic delays gave Bangladesh the opportunity to supply the required cigarette packets to Sudan within a month.
"Pakistan has lost a $20.5-million cigarette-export order to Sudan following delays in regulatory approvals," the Pakistani media outlet Profit reported on Thursday.
According to the report, though Prime Minister Shehbaz Sharif approved a necessary amendment to the Statutory Regulatory Order (SRO), the Ministry of Health's reluctance to act led to the order cancellation.
The delay was compounded by lobbying from international NGOs, which raised concerns about Pakistan's cigarette exports, slowing the process further, it said.
In Pakistan's domestic market, sales of illegal cigarettes have surged, contributing to a significant decline in legal sales. Legal sales dropped by approximately 800 million sticks in the first quarter of the fiscal year, from 7.1 billion to 6.3 billion sticks, the Profit reported.
One major brand saw a steep reduction, with annual volumes falling from 660 million to 300 million sticks.
The report projected that Pakistan's cigarette market could face a revenue shortfall of Rs4 billion by the fiscal year's end due to these challenges.
Despite government initiatives, significant obstacles remain in supporting Pakistan's legitimate cigarette industry and expanding export opportunities on a competitive global market, according to the report.
In June this year, a subsidiary of British American Tobacco in Pakistan was lobbying the government of Pakistan to allow the company to export 10 packs of cigarettes to war-torn Sudan, prompting criticism from a smoking campaign group, according to media reports.
Pakistan is among more than 80 countries that do not permit the sale or manufacture of 10 pack cigarettes, which the World Health Organization has said make smoking more affordable for children, it was learnt.
But BAT's subsidiary, Pakistan Tobacco Company (PTC), wrote to the government's health ministry to lobby for a change in the law that would allow it to make smaller packs there, for export to Sudan and other countries where they are not prohibited, according to media reports.