Karachi: Philip Morris (Pakistan) Limited (PMPKL) presented its Annual Report for the year ending December 31, 2024, highlighting a complex economic environment coupled with industry-specific challenges. The report was released amid a backdrop of improved economic indicators in Pakistan, including lower interest and inflation rates, management of the current account deficit, and stable exchange rates. However, the country’s economic framework remains under the scrutiny of the International Monetary Fund (IMF) due to its Extended Fund Facility arrangement. The report emphasizes the necessity for structural reforms, political stability, and a robust approach to human capital to harness Pakistan’s economic potential.
The report anticipates continued economic challenges in the coming year, as the nation seeks macroeconomic stability through stringent monetary and fiscal policies. It underscores the importance of exploring new revenue generation avenues and enhancing the ease of doing business to achieve long-term stability.
The tobacco industry in Pakistan faces significant issues due to the widespread availability of low-priced, non-tax-paid cigarettes sold below the minimum tax payable on a pack. This not only impacts the national exchequer but also poses a challenge for tax-compliant cigarette manufacturers and the government’s public health objectives. The Track and Trace System (TTS), implemented on July 1, 2022, aimed to ensure tax compliance on all cigarettes sold in Pakistan. However, the benefits have yet to be fully realized due to insufficient implementation and staggered enforcement.
According to information available from the Pakistan Stock Exchange (PSX), PMPKL continues to contribute to the national exchequer, demonstrating resilience amid these challenges. The company emphasizes sustainability, focusing on innovation, value creation, and positive social impact through initiatives like adolescent skill training, water efficiency promotion, and women empowerment programs.
PMPKL also highlights its commitment to employee growth and development, having implemented a global DNA framework to foster a culture of ownership and innovation. The company remains dedicated to offering smoke-free products aligned with PMI’s vision for adult smokers seeking alternatives.
The existing Board of Directors, appointed on October 29, 2023, will serve until October 28, 2026. The Board comprises seven directors, including three independent, two non-executive, and two executive directors. As of December 31, 2024, the Board included six male and one female director. The Board held four meetings in 2024, with attendance documented for each director.