British American Tobacco (BAT), through its subsidiary Pakistan Tobacco Company Limited (PTC), plays a pivotal role in Pakistan’s formal tobacco industry. In 2025, PTC continues to lead in innovation, exports, and tax contributions, while facing strong regulatory and market challenges.
Overview of PTC – BAT’s Subsidiary in Pakistan
Founded in 1947, Pakistan Tobacco Company is among the oldest and most profitable multinationals operating in the country. It is publicly listed on the Pakistan Stock Exchange (PSX: PAKT) and manufactures for both domestic and international markets.
| Key Information | Details |
|---|---|
| Company Name | Pakistan Tobacco Company (PTC) |
| Parent Company | British American Tobacco (BAT) |
| Founded | 1947 |
| Listed On | Pakistan Stock Exchange (PSX: PAKT) |
| Main Factories | Jhelum, Akora Khattak |
| Employees (2025) | Approx. 1,050 |
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Major Contributions in 2025
In 2025, BAT Pakistan contributed significantly to the economy:
| Category | Value |
|---|---|
| Total Tax Contribution | PKR 258 Billion (2024-25) |
| Cumulative Since 2021 | Over PKR 600 Billion |
| Export Countries | Japan, France, Peru, and others |
| Global Business Services Hub | 50+ countries served from Lahore |
Investments & Technological Advancements
- Oral Nicotine Facility (Jhelum): USD 40 million invested. Exports began in 2024.
- GBS Hub (Lahore): USD 5 million investment, over 350 professionals serving finance, analytics, digital, and supply chain functions.
- Product Innovation: Manufacturing and exporting “Velo” nicotine pouches as part of BAT’s “A Better Tomorrow™” strategy.
Sustainability Goals
BAT Pakistan is actively focused on ESG and environmental targets:
| Initiative | Status/Goal |
|---|---|
| Emissions Reduction | 50% cut by 2030 (Scope 1–3) |
| Net-Zero Emissions | By 2050 |
| Tree Plantation (since 1981) | 160+ million saplings |
| Renewable Energy | 5.3 MW solar park in use |
| Crop Sustainability | Using AI and satellite monitoring |
Market Challenges
Illicit Cigarette Trade
- Illicit market share: Over 54% of total cigarette consumption
- Revenue Loss to Govt: Approx. USD 1 billion annually
- Effect on Formal Sector: Drop in legal consumption from 80B to 30B sticks (projected by 2026-27)
High Excise Duties
- Excise hike impact: Sales down by 38%, revenue up only 8%
- Risk: BAT has warned of possible exit if tax burden increases
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Strategic Positioning & Outlook
Despite market challenges, BAT Pakistan remains a major contributor to the formal economy:
| Area | Strengths |
|---|---|
| Taxpayer Position | Top taxpaying FMCG company |
| Export Strategy | Focused on value-added nicotine products |
| Workforce Development | GBS hub providing skilled employment |
| Digital Transformation | Investment in modern tools & platforms |
Summary Table
| Indicator | Value/Insight |
|---|---|
| Founded | 1947 |
| Parent Company | British American Tobacco (BAT) |
| Employees | 1,050+ |
| Tax Paid in 2024 | PKR 258 Billion |
| Export Destinations | France, Japan, Peru |
| ESG Focus | Net-zero by 2050, 5.3 MW solar energy |
| Key Product Innovation | Oral nicotine pouches (Velo) |
Conclusion
British American Tobacco Pakistan remains a powerhouse in the country’s industrial landscape in 2025. With its consistent tax contributions, sustainable practices, and focus on product innovation, PTC is steering the tobacco industry toward a diversified and modern future. However, market threats from illicit trade and over-taxation pose serious hurdles to its long-term operation. Stay tuned with Bloom Pakistan
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