KARACHI - Philip Morris (Pakistan) Limited (PMPKL) posted a profit after tax of PKR 1,533 million for the half year ended June 2022, showing a decline of 11% from the corresponding period last year due to higher taxation reflecting recording of super tax imposed at 10% during Jun’22 Finance Bill for the financial year ended Dec 31, 2021 (the tax Year 2022). For the six months ended June 30, 2022, PMPKL recorded a net turnover of PKR 10,166m, reflecting an increase of 10.2% vs the same period last year (SPLY), this includes a domestic net turnover of PKR 9,175m, an increase of 1.5% vs. SPLY, coupled with exports turnover of PKR 991 million, an increase of over 100% vs. SPLY, reflecting the delayed exports at the end of 2021 on account of external supply chain constraints and were materialized in the first quarter of 2022. PMPKL’s contribution to the national exchequer, in the form of excise duty, sales tax, and other govt levies, during the fiscal year ended June 30, 2022, (July 2021 to June 2022) stood at PKR 26,492 million, reflecting an increase of 5.22% vs prior fiscal year.

Expressing his views on PMPKL’s financial performance, Roman Yazbeck, Chief Executive Officer &Managing Director at PMPKL, said, “Pakistan’s economy is going through an unprecedented economic downturn due to the global and local economic crisis, coupled with the political instability in the country. The historical rupee devaluation, inflation and record hike in the policy rate is making the operating environment extremely difficult for all businesses”

“However, we would like to thank and congratulate the government of Pakistan on the implementation of the Track & Trace System for the tobacco industry. With the effective enforcement and across-the-board implementation, we are hopeful that this initiative will go a long way in combatting the illicit cigarette trade (i.e., 38% of the total market as per Oxford Economics) which is causing an estimated annual loss of PKR 80 billion (approx.) to the National Exchequer” he added.