Multinationals Begin Buying Surplus Tobacco in Pakistan

SWABI, October 29, 2026 — Philip Morris International and Pakistan Tobacco Company have started buying surplus tobacco from farmers. Their purchases follow a Pakistan Tobacco Board meeting that set a target of 47 million kilograms.

Philip Morris International began buying on October 27. Pakistan Tobacco Company followed on October 28, grower representative Nasir Khan told Dawn. Pakistani firms had not started buying when the report was published. Dawn reported.

Growers want clear commitments

Growers are asking companies to announce next year’s purchase quotas. They also want written agreements with farmers and bank payments for tobacco sales.

Grower representatives made two further requests. They want a tobacco exhibition in a tobacco-growing area instead of Karachi. They also want companies to carry out their agreements with growers.

The requests follow a long wait for buyers. Companies stopped regular purchases on September 15 after meeting their announced quotas, according to an earlier Dawn report. Growers had criticised the delay.

Surplus tobacco prices vary

Company spokespersons cited by Dawn gave these minimum indicative prices:

• Flue-cured Virginia: Rs545 per kilogram in plains areas and Rs615.90 in mountainous areas
• White Patta and other types: Rs262.60 per kilogram
• Dark air-cured tobacco: Rs316 per kilogram
• Naswar, snuff and hookah tobacco: Rs388.90 per kilogram
• Sun-cured Virginia: Rs350.20 per kilogram

The Pakistan Tobacco Board says the federal government sets minimum indicative prices for different tobacco types and grades. Its published FAQ also says buyers must not pay below the notified rates. Read the PTB FAQ. Dawn reported the prices above, but I could not confirm them against a 2026 government notification.

Growers warn of further losses

Grower leader Iqbal Shewa said farmers had already lost Rs6.5 billion because of low prices. He estimated that late purchases could cause another Rs8 billion in losses.

These are estimates from a growers’ representative, not independently audited figures. Farmers also fear buyers may delay purchases to pay less for the crop. Dawn reported this as the growers’ concern, not as a confirmed company plan.

The two multinational companies have started buying. However, Pakistani firms had yet to begin at the time of the report. Growers are now seeking timely purchases, written agreements and clear payment arrangements.