ISLAMABAD: In a series of coordinated intelligence-based enforcement actions, Pakistan Customs Enforcement under the Chief Collectorate of Customs Enforcement, Islamabad, has successfully dismantled multiple networks engaged in the illicit trade of smuggled cigarettes and raw materials used in illegal cigarette manufacturing.
Major recoveries were made in Lahore and Hyderabad with the total value of seized goods estimated at over Rs1.1 billion, according to press release issued by Federal Board of Revenue (FBR).
Acting on credible intelligence, the Collectorate of Customs (Enforcement), Lahore, conducted a major intelligence-led operation exposing an organized network of illegal cigarette manufacturers operating under the guise of rice mills.
Acting on a tip-off, Customs officers raided M/s Ayesha Rice Mills, Daska and recovered a massive consignment of acetate tow, cigarette paper, filter rods, aluminum foil, and adhesive materials – all essential inputs for the production of counterfeit and non-duty-paid cigarettes.
During follow-up investigation, another premises, M/s Nazeer Rice Mills, Daska, located nearby, was identified as a potential storage site. A detailed search revealed that the facility had been hurriedly vacated following the earlier raid.
Evidence recovered from the site confirmed that the smuggled materials had been relocated to warehouses near Sundar Industrial Estate, Lahore.
A coordinated team led by Arsalan Mughal, Assistant Collector, and Rashid Munir, Superintendent, carried out raids, recovering approximately 12.5 metric tons of acetate tow and over 120 metric tons of cigarette-making materials, including packaging rolls, filters, and foils.
The total market value of the seized goods is estimated at over Rs1 billion, making it one of the largest seizures in Pakistan’s enforcement history. The operation not only disrupted the illegal manufacturing network but also provided vital leads into the supply chain of raw materials being smuggled from abroad and distributed to unlicensed factories across Punjab.
As part of the nationwide crackdown, the Collectorate of Customs Enforcement, Hyderabad, intensified operations against the smuggling of non-duty-paid cigarettes and illegal tobacco raw materials.
Between 1st and 29th October 2025, multiple enforcement actions were carried out, leading to seizure of 386,100 packets (7.72 million sticks) of imported and counterfeit cigarettes, valued at Rs. 54.48 million, from various parts of Hyderabad.
A major raid on a godown near Tando Allahyar during the night of 28th–29th October 2025, resulted in the recovery of 18,492 kg of smuggled Brazilian-origin tobacco and 433 kg of acetate tow (finished rods/filaments), valued between Rs. 45-50 million.
The seized materials, which are critical inputs for unlicensed cigarette manufacturing, were secured. Investigations are underway to trace the networks’ financiers, suppliers, and manufacturing facilities.
Meanwhile, Chairman FBR lauded the coordinated efforts of the Lahore and Hyderabad Collectorates, emphasizing that these operations reflect FBR’s strengthened resolve to combat the illicit tobacco supply chain.
These enforcement actions under the FBR Transformation Plan signify the Board’s commitment to eliminating the nexus of smuggling, tax evasion, and illegal cigarette manufacturing.
By targeting both the supply of raw materials and distribution of counterfeit cigarettes, FBR is ensuring revenue protection, fair competition, and public health safety, the press release added.
