Tobacco Crop: Undiscovered Potential for Pakistan’s Economy and Tobacco Growers

The tobacco crop of Pakistan has got potential to flourish far better. This has been proved by the sections in the paper. It can be deduces for the facts and figures provided that Pakistan can increase its foreign exchange reserves by implementation of open auction system through which the purchaser can bid for the raw material hence the growers can sell it on the price which can at least cover its cost and not on the forced price set by the PTB which is obviously pro-purchaser.  The government is not aware of the fact that the contribution Tobacco crop towards national exchequer is primarily the proportion paid by the consumer which is not very health for the economy; it promotes the rise in assets of industrialist on the stake of consumer. The manufacturing companies are not paying the growers adequately and at the same time shifting the excise duties and sales tax to the consumer in the shape of cost of production. Hence the revenue generated by the government by excise duties and sales tax is not paid by the manufacturing companies. If we take into account the consumption of the tobacco products we came to know that it is also exceeding the revenue generated by the production of the tobacco.  So the only way to increase the credibility of the crop is by paying the farmers properly it will enhance the indirect injections of foreign exchange in the country’s economy and will also help in raising the living standards of the people affiliated with the industry directly or indirectly.  Furthermore it is not advisable to increase the production of a prohibited crop so it’s better if the present area dedicated for the Tobacco production should be utilized to increase profit margins. The international demand for tobacco is also decreasing which can affect the international compatibility of the crop again reducing the scope of profit generation; only markets which can be targeted through it are the developing countries whose demand for tobacco is increasing significantly. The address the problems faced by the growers the fund can be utilized which is supposed to target the grievances of the grower community. Similarly if the illicit trade of the crop is prevented it will further help in boosting the industry which is facing severe losses due to illegal mobilization of the product.