LAHORE: Increasing smuggling of tobacco products, heavy taxes and high cost have forced one of the largest multinational companies in Pakistan, Philip Morris (Pakistan) Limited (PMPKL) has shut its cigarette manufacturing operations suddenly in in Mandra, district Rawalpindi.
Sources said that the other reason is that the company could not compete with brands, which evade taxes. They said that tax-evading cigarette makers sell more than 14 billion cigarettes in Pakistan annually and also increasing their production facilities.
According to FBR, sale of tax-evaded cigarettes is causing annual loss of more than Rs14 billion.
PMPKL Managing Director Alejandro Paschalides said that the decision of closing one manufacturing plant was an extremely difficult, yet necessary for PMPKL management. He further said that the PMPKL remains committed to operating in Pakistan.
The closure of Mandra factory closure will affect around 100 employees but offered generous packages.
