Karachi: Pakistan Tobacco Company Limited (PTC) has released its annual financial results for the year ended December 31, 2025, showcasing a gross turnover of PKR 374.7 billion, a growth of 5.4% from the previous year, despite a challenging macroeconomic and regulatory environment.
According to the Directors' Report dated April 7, 2026, Pakistan's economy has shown signs of gradual improvement throughout 2025. This improvement is attributed to factors such as measured monetary easing and stabilized external accounts, although structural headwinds persist. The government remains committed to the IMF EFF Program, though economic recovery efforts are constrained by elevated public debt levels and moderate export performance.
In the fiscal landscape, the tobacco industry faced a significant increase in Federal Excise Duty (FED) in FY 2022-2023, which contributed to a surge in illicit cigarette trade, reaching its peak in 2024. However, the decision to keep FED rates unchanged has played a crucial role in curbing further growth of the illicit trade. The introduction of a specific FED for modern oral nicotine pouches reflects a shift in the regulatory approach, while challenges remain, particularly for E-liquids, where duty adjustments rendered compliant products unsellable.
The company's performance in 2025 highlights its resilience and robust business model, with a notable increase in gross turnover and record export levels of PKR 14.4 billion. PTC's tax contributions stood at PKR 260.8 billion, maintaining its position as one of the most significant contributors to the formal economy in Pakistan.
According to information available from the Pakistan Stock Exchange (PSX), PTC posted a profit after tax of PKR 29.85 billion, with earnings per share of PKR 116.85. This reflects a commitment to shareholder value creation, supported by targeted investments and operational excellence across its business pillars.
The company's strategy focuses on Quality Growth, Sustainable Future, and Dynamic Business, aligning with the BAT Group's global strategy. PTC has maintained its leadership in the legitimate combustible cigarette segment and expanded its Modern Oral category, with VELO volumes rising by 11.4% and turnover increasing by 43%.
PTC's social impact initiatives include a significant afforestation program and community health services, reinforcing its commitment to sustainability and social responsibility. The company continues to advocate for effective regulation and enforcement to combat illicit trade, ensuring a level playing field in the market.
Looking ahead, PTC aims to prioritize innovation, export competitiveness, and operational excellence, while actively engaging in policy advocacy to strengthen the formal economy and support long-term national revenue generation.