Key Takeaways
- ACT Alliance Pakistan claims a sophisticated cigarette smuggling network is costing Pakistan billions in tax revenue.
- The organization alleges that Milano and Mond cigarettes are manufactured by Gulbahar Tobacco Company, owned by an Afghanistan-based family.
- Gulbahar Group has business interests across multiple countries and is involved in various commercial projects.
ACT Alliance Pakistan has accused a cross-border cigarette smuggling network linked to Afghanistan of costing the country billions of rupees in tax revenue. The organization, which claims that Milano and Mond cigarettes are manufactured by Gulbahar Tobacco Company, an entity allegedly owned by an Afghan family, has called for a comprehensive investigation into the alleged illicit trade.
According to ACT Alliance Pakistan, the Gulbahar Group operates cigarette manufacturing facilities in Dubai and Russia, with business interests spanning Afghanistan, the United Arab Emirates, Europe, the United Kingdom, Russia, and Pakistan. The organization further alleges that these cigarettes are smuggled from Afghanistan through mountainous routes into Balochistan before being distributed across Pakistan via an organized logistics network.
The group claims that consignments of Milano and Mond cigarettes are sometimes concealed within shipments of energy drinks and other legitimate goods to evade law enforcement. ACT Alliance Pakistan also alleged that multiple organized groups facilitate the smuggling operation, with proceeds from illegal cigarette sales laundered into Afghanistan each month.
The organization argues that the illegal trade results in significant financial losses for Pakistan, estimating that billions of rupees are lost every month due to tax evasion. It further claims that funds generated through cigarette smuggling are invested by the Gulbahar Group in major commercial and infrastructure projects across Afghanistan, including a Rs. 8 billion residential and commercial project in Kabul, a USD 142 million cement plant in Herat, and a USD 500 million hydropower project in Parwan Province.
ACT Alliance Pakistan asserts that the alleged smuggling network extends beyond tax evasion and could potentially be exploited for espionage, terrorism financing, illicit financial flows, and other anti-state activities. The organization has urged relevant authorities, including the Federal Board of Revenue, Pakistan Customs, federal and provincial law enforcement agencies, to investigate the allegations, dismantle suspected money laundering channels, and take action against those involved in the nationwide distribution of smuggled cigarettes.
In a statement, ACT Alliance Pakistan emphasized the need for a comprehensive investigation into the alleged network and those involved. The organization stated that the illegal trade is not only a financial issue but also poses potential national security risks.
