Pakistan, July 20 -- ISLAMABAD - A new study by the non-profit group Umeed-i-Sehar has revealed that Pakistan's illegal cigarette trade is thriving due to poor government outreach and low retailer awareness. The survey, conducted across 2,000 retailers in Karachi, Lahore, and Islamabad, found that 97% had never been contacted by the Federal Board of Revenue (FBR) for compliance checks.

Moreover, 86% of the shopkeepers were unaware of the penalties for selling untaxed cigarettes. This lack of basic knowledge is contributing to the growing circulation of illicit cigarette packs, many of which are sold at lower prices and avoid government taxation entirely.

The study also highlighted that only 27% of the surveyed retailers could identify l...