Finance minister says enforcement drive expanded across key sectors as Pakistan targets undocumented economic activity
Federal Minister for Finance and Revenue Muhammad Aurangzeb on Monday said the government is intensifying enforcement against illicit and undocumented economic activity, particularly in the tobacco sector, as part of its broader fiscal reform agenda.
The remarks came during a meeting at the Finance Division with a delegation of the Pakistan Tobacco Company (PTC) led by Usman Zahur, Area Director (APMEAC) and General Manager Pakistan.
The delegation included senior officials from marketing, corporate affairs and fiscal affairs, who discussed sectoral challenges including taxation, illicit trade and export competitiveness.
Aurangzeb outlined the government’s strategy to strengthen revenue mobilisation, broaden the tax base and improve transparency through technology-driven reforms.
He said ongoing reforms in tax administration—focused on people, processes and technology—aim to improve compliance, reduce leakages and ensure fair revenue collection across all sectors of the economy.
The minister noted that enhanced enforcement operations supported by digitisation, technology-based monitoring systems and coordinated action by relevant agencies were producing results across multiple industries.
According to Aurangzeb, sectors including sugar, cement, beverages, textiles and tobacco are witnessing stricter enforcement measures to curb illegal and undocumented activities.
The PTC delegation appreciated the government’s reform efforts and acknowledged recent action against illegal and non-compliant tobacco operators.
Company representatives stressed the importance of a stable and predictable taxation framework to support formal sector growth and sustainable revenue generation.
Discussions also covered regulatory challenges, market dynamics, sector competitiveness and coordination between federal and provincial enforcement agencies.
The finance minister reiterated that revenue mobilisation and effective enforcement remain central pillars of the government’s fiscal strategy, adding that sector-specific proposals would be evaluated in line with broader economic priorities.
Both sides also discussed export potential and investment opportunities in tobacco and related value-added products.
PTC representatives highlighted Pakistan’s growing role as a regional manufacturing and export hub for selected product categories and shared views on international market opportunities.
Regional enforcement models, taxation systems and regulatory practices in comparable markets were also reviewed during the meeting.
Aurangzeb reaffirmed the government’s commitment to continued engagement with the formal business sector to encourage investment, exports and sustainable industrial growth.
He said reforms aimed at improving ease of doing business, strengthening compliance systems and promoting a more transparent and competitive economic environment would continue.
