Total Number of Cigarettes Produced in Pakistan during the 2020 and 2021 Calendar Years / Estimated 2022 Cigarette Production Amounts in Pakistan
According to recent data from the Pakistan Bureau of Statistics (PBS), cigarette production in Pakistan experienced significant growth. In the period of January to June 2022, the country’s cigarette production increased by 10% compared to the previous year, reaching a total of 29.15 billion sticks [3]. This growth trend follows the 2021 figures, where the annual cigarette output reached 57 billion sticks, reflecting a 16% year-on-year increase from 2020 [3].
During the first half of 2022, the average monthly cigarette production was 4.86 billion sticks, which was an improvement from the same period in 2021 [3]. These numbers approached the highest average monthly production recorded in 2018, which was 5.1 billion sticks. It is worth noting that the peak monthly production occurred in April 2018, with a record of 6.27 billion sticks [3].
The growth in cigarette production during H1 2022 is evident in the financial reports of the top two tobacco companies in Pakistan, namely Philip Morris (Pakistan) Limited (PMPK) and Pakistan Tobacco Company Limited (PAKT) [3]. PMPK’s net turnover increased by 10% year-on-year, reaching PKR 10.16 billion, while PAKT’s net turnover experienced a 21% year-on-year growth [3]. Despite the double-digit growth in operating profitability for both companies during the analysis period, their net profits or bottom lines decreased by double digits. PAKT and PMPK recorded a 10% and 11% decline in net income, respectively, amounting to PKR 8.51 billion and PKR 1.53 billion [3]. These declines can be attributed, at least in part, to a 10% “super tax” implemented in June, which affected several industries, including tobacco [3].
Looking ahead, the cigarette industry in Pakistan faces challenges due to new tax regulations. In August, a PKR 36 billion tax on cigarettes and tobacco was announced, aiming to compensate for a PKR 15 billion reduction in retail tax [3]. The tax increase poses a significant challenge for the industry. The tax on a 50 pack-stack (1,000 cigarettes) for tier-1 cigarettes rose from PKR 5,900 to PKR 6,500, while tier-2 cigarettes saw an increase from PKR 1,850 to PKR 2,050. Additionally, the tax on tobacco increased by 3,800% from PKR 10 per kg to PKR 380 per kg [3].
To access more detailed information regarding the total number of cigarettes produced in Pakistan during the mentioned calendar years, including historical data and market analysis, you can refer to the Euromonitor International report titled “Cigarettes in Pakistan” [1]. Additionally, the Pakistan Bureau of Statistics (PBS) provides statistical data on various aspects of the country’s economy, including cigarette production [3]. For a comprehensive overview of the tobacco situation in Pakistan, you can consult the World Health Organization’s country profile on Pakistan [2].
To access more detailed information regarding the total number of cigarettes produced in Pakistan during the specified years and estimated 2022 cigarette production amounts, you can refer to the following sources:
- Euromonitor International’s report on “Cigarettes in Pakistan” provides analysis of key supply-side and demand trends, historic volume and value sizes, company and brand market shares, and five-year forecasts of market trends and growth [1]. The report can be accessed at: [1]
- The World Health Organization (WHO) provides a country profile for Pakistan, which includes information on tobacco-related issues. This profile might have relevant data on cigarette production in Pakistan [2]. The document can be found at: [2]
Cigarette production in Pakistan has been a significant aspect of the country’s tobacco industry. The demand for cigarettes has been influenced by various factors, including taxation, legislative restrictions, and changes in consumer preferences. In this article, we will explore the total number of cigarettes produced in Pakistan during the years 2020 and 2021, as well as estimate the cigarette production amounts for the year 2022. The data used in this article is based on information from Euromonitor International, the Pakistan Bureau of Statistics (PBS), and Business Recorder.
- Cigarette Production in 2020:
In 2020, Pakistan witnessed a certain level of cigarette production, contributing to the country’s tobacco market. Unfortunately, specific production figures for this year were not available in the sources mentioned. Nevertheless, the market trends and taxation rates during this period might have impacted the overall cigarette production landscape.
- Cigarette Production in 2021:
During the year 2021, Pakistan experienced a considerable boost in cigarette production compared to the previous year. The annual output reached a remarkable 57 billion sticks, reflecting a remarkable 16% growth year-on-year from 2020. The rise in production could be attributed to various factors such as an increase in demand, evolving consumer preferences, and market dynamics.
- Cigarette Production in 2022:
For the first half of 2022 (January to June), recent data from the Pakistan Bureau of Statistics (PBS) revealed that the country’s cigarette production continued to grow impressively. During this period, Pakistan’s cigarette production increased by 10% year-on-year to reach 29.15 billion sticks. The average monthly cigarette production for the first half of 2022 was 4.86 billion sticks, demonstrating a notable increase from H1 2021. This upward trajectory in production indicates a positive trend for the tobacco industry in Pakistan.
The financial reports of the top two tobacco companies in the country, Philip Morris (Pakistan) Limited (PMPK) and Pakistan Tobacco Company Limited (PAKT), further affirm the growth in cigarette production. Both companies witnessed topline growth, leading to an increase in operating profitability. However, their net profits experienced a decline of 10% and 11% year-on-year for PAKT and PMPK, respectively. This decline may have been influenced by a 10% “super tax” imposed on various industries, including tobacco, in June of that year.
- Estimating Cigarette Production for the Full Year 2022:
Based on the first-half data from PBS, it can be estimated that Pakistan’s total cigarette production for the full year 2022 would likely reach approximately 58.3 billion sticks (29.15 billion sticks x 2). This estimation assumes a consistent production trend in the second half of the year similar to the first half.
Regarding the Large Scale Manufacturing (LSM) index in Pakistan, the Pakistan Bureau of Statistics (PBS) conducts the Census of Manufacturing Industries (CMI) to measure production and structural changes in LSMI. The CMI provides valuable data on various aspects, including the values of inputs and outputs, census value-added, contribution to GDP, fixed assets, stocks, employment and employment cost, and industrial taxes. This information is essential for developing new weights for the Quantum Index of Manufacturing (QIM) [1].
If you are interested in exploring publications and monthly production related to CMI and the QIM, the following resources are available for your reference:
- Census Manufacturing Industries (CMI) 2015-16: You can access the microdata of the CMI publications from 2005-06 and 2015-16. The availability and cost of this data are subject to the data dissemination policy of the PBS [1].
- Quantum Index of Large Scale Manufacturing Industries (QIM): The QIM is a monthly production index that provides insights into the performance of large-scale manufacturing industries. You can find more information about the QIM on the PBS website [1].
To further enhance your understanding of the manufacturing sector and related publications, I recommend visiting the State Bank of Pakistan’s website at www.sbp.org.pk. They offer publications and research sections that may provide additional valuable insights [1][2][3].
I hope this information helps you gather the necessary resources and data for your research. If you have any further questions or need assistance with anything else, please feel free to ask.
In conclusion, Pakistan’s cigarette production witnessed significant growth during the years 2020, 2021, and the first half of 2022. The annual output increased from 57 billion sticks in 2021 to an estimated 58.3 billion sticks for the full year 2022. These figures reflect the evolving dynamics of the tobacco industry in Pakistan, including changes in taxation and legislative restrictions. However, it is important to note that the estimated data for 2022 is based on the first-half figures, and actual production may vary slightly.
Sources:
- Euromonitor International: 1
- Pakistan Bureau of Statistics (PBS):.