Islamabad — ACT Alliance Pakistan has formally expressed its concern over emerging media reports indicating that two out of three members of a recently formed Senate Sub-Committee on illegal tobacco trade may themselves have direct commercial links to the tobacco industry. The civil society platform, which advocates for economic fairness in Pakistan, has urged the Chairman of the Senate to look into the matter and take steps to preserve the neutrality and credibility of the parliamentary process.
The Sub-Committee in question was constituted under the Senate Standing Committee on Commerce on May 6, 2025, and was tasked with addressing the critical issue of illegal trade in the tobacco sector, a matter with significant fiscal implications for Pakistan.
According to recent reports, the illegal cigarette industry annually evades over Rs. 300 billion, and the market share of illegal cigarettes has now grown to 56%.
“We greatly appreciate that the Senate has taken up the issue of illegal tobacco trade with seriousness,” said Mubashir Akram, National Convenor of ACT Alliance Pakistan. “However, the recent reports about potential conflicts of interest within the Sub-Committee are deeply concerning. Suppose individuals whose close families are directly linked to the tobacco business are sitting on a body meant to investigate and address the abuses of that very industry. In that case, the questions about the neutrality and credibility of the Sub-Committee arise.”
Urging a review of the decision, ACT Alliance Pakistan emphasized that public trust in parliamentary oversight depends on the perception of impartiality and institutional integrity.
“This is not about politics or personalities. It is about ensuring that the parliamentary process remains free from undue influence,” Akram said. “If we are serious about confronting tax evasion and illegal trade, then we must begin with clean and conflict-free governance structures.” Akram further emphasized the economic urgency of the issue, saying that “each year, the illegal cigarette trade alone costs the national exchequer hundreds of billions of rupees in lost tax revenue. Legal, tax-paying businesses are suffocating under the weight of unfair competition. Meanwhile, those breaking the law grow stronger. Parliament’s role should be to strengthen enforcement and discourage the scourge of illegal trade in all forms.”
The ACT Alliance has long advocated for year-round enforcement against illegal trade in key sectors and has consistently supported initiatives by the Federal Board of Revenue (FBR) and other institutions aimed at modernizing taxation, increasing transparency, and reducing the influence of shadow economies.
“We believe the Senate’s intent was genuine when it formed this Sub-Committee. What we are asking for now is simple: that the committee’s work not be tainted by questions of bias or undue influence,” Akram said. “The public deserves to know that their representatives are working in the national interest, without any kind of commercial conflict.”
The Alliance called on the Senate Secretariat to review the possibility of any conflict of interest and, if necessary, reconstitute the Sub-Committee to ensure credibility in the proceedings and fairness in its conclusions.
