Proposed licensing agreement aims to expand KHTC’s product portfolio and strengthen its market position

KARACHI, July 6, 2026: Khyber Tobacco Company Limited (KHTC) has signed a Memorandum of Understanding (MoU) with South Korea’s KT&G Corporation to pursue a royalty licensing arrangement for the Pine Passion Sky cigarette brand, marking a significant step towards expanding its product portfolio in Pakistan.

In a notice submitted to the Pakistan Stock Exchange (PSX) on Monday, KHTC informed shareholders that the MoU serves as the initial framework for negotiating a formal licensing agreement between the two companies.

Under the proposed arrangement, KHTC plans to manufacture and/or market the Pine Passion Sky brand in Pakistan, with the possibility of expanding into other mutually agreed territories.

The company emphasised that the proposed collaboration remains subject to the execution of definitive agreements, obtaining all required regulatory approvals, and fulfilling customary commercial conditions.

KHTC stated that once the final licensing agreement is executed, it will promptly disclose the development through the Pakistan Stock Exchange’s Public Unquoted Companies and Reporting System (PUCARS), in accordance with applicable disclosure requirements.

The company believes the proposed partnership could enhance its product portfolio, strengthen its competitive position in the domestic tobacco market, and support its long-term growth strategy.

KHTC further noted that any material developments relating to the transaction will be disclosed to the market in line with relevant legal and regulatory obligations after the execution of the definitive agreements.

The announcement reflects KHTC’s continued efforts to broaden its brand offerings through international collaborations while remaining subject to the completion of regulatory and commercial formalities before the proposed licensing arrangement becomes effective.