Karachi: On behalf of the Board of Directors, the CEO and the Chairman of Philip Morris (Pakistan) Limited presented the Annual Report for the year ended December 31, 2024. The report detailed a complex interplay of short-term stabilization and long-term uncertainties within Pakistan's economic landscape, as the company seeks to navigate these challenges.
In 2024, key economic indicators in Pakistan showed improvement, including lower interest and inflation rates, managed current account deficits, and stable exchange rates. Despite these gains, the economy remains under the scrutiny of the International Monetary Fund due to the Extended Fund Facility arrangement. The report anticipates that 2025 will continue to present challenges as the nation endeavors to achieve macroeconomic stability through strict monetary and fiscal policies.
The report emphasized the importance of exploring new avenues for resource generation, which can be achieved through stable policies. It also highlighted the need to leverage existing potential for revenue generation by enforcing relevant laws and easing business operations to achieve long-term stability in Pakistan.
Pakistan's tobacco industry faces significant obstacles due to the prevalence of low-priced, non-tax paid cigarettes sold below the minimum legal price. This situation results in losses to the national exchequer and creates unfair conditions for tax-paying manufacturers. Additionally, it undermines the government's public health objectives by facilitating the widespread availability of non-compliant products. The Track & Trace System, effective from July 1, 2022, aimed to address these issues by ensuring tax compliance in cigarette sales. However, the report notes that insufficient implementation and staggered enforcement have hindered the full realization of these benefits, impacting compliant manufacturers.
Despite these economic and industry-specific challenges, Philip Morris (Pakistan) Limited continued to contribute to the national exchequer, showcasing resilience and responsible corporate citizenship. The company's commitment to sustainability is integral to its corporate strategy, focusing on innovation, growth, and creating lasting value. Initiatives such as adolescent skill training, water efficiency promotion, and women empowerment through programs like "Make Your Come Back" underscore their dedication to sustainable practices and social progress.
The company regards its employees as its most valuable asset, prioritizing their well-being, growth, and development to enhance performance. This year, Philip Morris implemented a global DNA framework to encourage ownership and overcome boundaries, fostering a mindset that significantly impacts employee growth and development. This framework aims to ensure that every decision contributes to a sustainable future for the company.
Philip Morris (Pakistan) Limited is aligning its smoke-free product portfolio with the vision of offering alternative products for adult smokers. The company reaffirmed its commitment to stakeholders and emphasized conducting business with the right values.
According to information available from the Pakistan Stock Exchange (PSX), Philip Morris (Pakistan) Limited continues to perform in a challenging market environment. The company extended gratitude to its adult consumers, shareholders, employees, and other stakeholders for their ongoing support.