Tobacco farmers in Khyber Pakhtunkhwa (KP) are deeply concerned about the government’s decision to dissolve the Pakistan Tobacco Board (PTB), fearing it will lead to financial hardship, market instability, and exploitation. Experts warn that this move could disrupt the entire tobacco sector, which plays a crucial role in Pakistan’s economy.
“The PTB has protected farmers from market volatility and unfair pricing. Small farmers will be at the mercy of large companies and middlemen without it,” said an expert. He added that farmers could struggle with low prices and income losses without proper oversight.
PTB has ensured farmers receive fair compensation for their produce for years, helping them sustain their livelihoods. With control shifting to provincial governments, experts fear that the lack of infrastructure and expertise will lead to chaos in pricing and regulation.
The decision could threaten farmers and weaken the national economy. The legal tobacco industry contributes PKR 237 billion annually in taxes and generates hundreds of millions of dollars in exports. Experts warn that provincial mismanagement could allow the illegal tobacco trade to flourish, reducing government revenues and destabilizing the sector.
There is also growing concern about the broader impact on rural communities. Without steady incomes, many farmers may be forced to seek alternative means of survival, potentially leading to increased involvement in illegal activities.
The expert urged the government to reverse its decision and consult with industry stakeholders before making such a critical move. “The livelihoods of thousands are at stake,” the expert stressed. “Without PTB, farmers, the economy, and even national security could suffer.”
It is worth mentioning that in a recent letter to the finance minister, the Pakistan Tobacco Board (PTB) also strongly opposed its dissolution, calling it unconstitutional and illegal. PTB officials argue that tobacco has always been a federal subject due to its economic significance. They warn that transferring its regulation to provinces without new legislation could create conflicts over production, exports, and taxation. Citing examples like China, India, and Zimbabwe, they stress that tobacco should remain federally regulated, as in other major economies.
