Although tobacco cultivation accounts for only about 0.21% of Pakistan’s total irrigated land, it plays a significant role in the national economy. Pakistan produces approximately 137 million kilograms of tobacco annually, a crop that directly supports the livelihoods of nearly 80,000 farmers and provides employment to around 50,000 individuals in more than 21 manufacturing facilities. Additionally, around 100,000 people are indirectly involved in the trade and distribution of tobacco products. The tobacco sector makes a substantial fiscal contribution, generating roughly Rs. 237 billion in Federal Excise Duty (FED) during FY 2023–24, and earning US $164.79 million from exports in FY 2024–25 (as of March 2025).
Approximately 80,000 people are involved in tobacco cultivation nationwide, with over 45,000 of them based in Khyber Pakhtunkhwa. This region is particularly notable for producing 98% of Pakistan’s Flue-Cured Virginia (FCV) tobacco, cultivated across 26,500 hectares in the districts of Swabi, Mardan, Charsadda, Buner, and Mansehra. These districts collectively produce an average of 70 to 75 million kilograms of FCV tobacco annually, which constitutes the primary raw material for cigarette manufacturing.
