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KARACHI: Despite no promotional campaign, attraction for cigarettes remained stable as Pakistanis burned Rs200 billion on smoking in fiscal 2011.
The startling cigarette production figures, provided by the State Bank of Pakistan in its latest statistical bulletin, show the number of cigarettes produced in the fiscal 2011 increased over last year.
The official figures do not show complete production figures because a number of unregistered factories across the country produce low-grade cigarettes with cheaper selling prices.
The central bank reported that 54.4 billion cigarettes were produced from January to October 2011, while the num-ber was 65.40 billion during the 2010-11 financial year.
If the average price of one cigarette is Rs3 (as prices fluctuate between Rs2.5 and Rs5), the cost of 65 billion cigarettes comes to Rs195 billion.
Average prices of the most popular brands range between Rs3.5 and Rs5.
It is surprising that the consumption of cigarettes has been rising even in the absence of advertising and despite a statutory warning on packets. It has also been observed that a number of substitutes for cigarettes, though prohibited, are available and doing a roaring business.
The SBP reported that the highest production of 75.6 billion cigarettes was recorded in 2009, while it was 65.29 billion in 2010 and 65.4 billion in 2011.The report does not mention the exact number of unregistered factories in the country and the number of unbranded cigarettes they are producing.
According to sellers, low-priced cigarettes are mostly produced in tribal areas of Khyber Pakhtunkhwa.
These cigarettes are not supplied to big cities like Karachi, but fake branded cigarettes produced by unregistered factories are available there.
The economy of cigarettes appears to be much higher than the figures provided by the State Bank because it does not include several imported or smuggled brands of cigarettes.
The prices of imported cigarettes are 100 to 200 per cent higher than any popular brand produced locally.
