ACT Alliance Pakistan has alleged the existence of a sophisticated cross-border cigarette smuggling network with links to Afghanistan that is costing the national exchequer billions of rupees in lost tax revenue while posing potential national security threats.
The organization has urged authorities to launch a comprehensive investigation into the alleged network and those involved in the distribution of illicit cigarettes across the country.
In a statement issued on Monday, ACT Alliance Pakistan claimed that Milano and Mond — two of the most widely available smuggled cigarette brands in the country — are manufactured by Gulbahar Tobacco Company, which it alleges is owned by an Afghanistan-based family. The organization further claimed that the company operates cigarette manufacturing facilities in Dubai and Russia.
According to ACT Alliance Pakistan, the Gulbahar Group has business interests spanning Afghanistan, the United Arab Emirates, Europe, the United Kingdom, Russia, and Pakistan. The organization alleged that the group holds investments in cigarette manufacturing, trading, hospitality, real estate, cement, energy, hydropower, and infrastructure projects.
The organization claimed that Milano and Mond cigarettes are smuggled from Afghanistan into Balochistan through mountainous routes before being distributed to wholesale and retail markets across Pakistan through an organized logistics network. It further alleged that consignments 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 and that proceeds from illegal cigarette sales are transferred to Afghanistan each month through money laundering channels. According to the organization, the illegal trade results in the loss of billions of rupees in tax revenue every month.
The organization further alleged that funds generated through cigarette smuggling are invested by the Gulbahar Group in major commercial and infrastructure projects across Afghanistan. It claimed the group’s portfolio includes Gulbahar Tobacco, Gulbahar Trading, Gulbahar Hotel, Gulbahar Investment, Gulbahar Petroleum LPG Company, and Adri International Tobacco.
ACT Alliance Pakistan also alleged that the group is developing an Rs. 8 billion, 11,000-acre residential and commercial project in Kabul, a $142 million cement plant in Herat, and a $500 million hydropower project in Parwan Province. It further claimed that the group provides financial and technical support to projects associated with the Afghan military.
The organization argued 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.
ACT Alliance Pakistan urged the Federal Board of Revenue, Pakistan Customs, federal and provincial law enforcement agencies, and other relevant authorities to investigate the allegations, dismantle suspected money laundering channels, and take action against those involved in the nationwide distribution of smuggled cigarettes.
