Introduction :

1)- Philip Moris International is a Swiss-American multinational cigarette and tobacco 

manufacturing company, with products sold in over 180 countries. Global production of green
tobacco is on average 6.3 million tons, of which over 60% is produced in Asia. Over the last
decade, the top three producers of tobacco leaf were China, India and Brazil. More than 15
million people are involved in tobacco growing on approximately 3 million farms, at a total
output value of more than USD 16.7 billion. Philip Morris (Pakistan) Limited, an
affiliate of Philip Morris International Inc. (PMI), is a public limited company
listed on the Pakistan Stock Exchange. Philip Morris International acquired a
majority stake in a local business in 2007. In response to awareness of the harm to
health of cigarettes, PMI has declared on its homepage the intention to replace cigarettes with
smoke-free products, and to "switch ... adult smokers" to these products as the first phase of a
business strategy, as a decision for the benefit of "adult smokers" and the company's
shareholders and employees. In April 2014, Philip Morris International announced that it would
close its Moorabbin plant in Australia by the end of 2014 after operating for 60 years, due to the
gradual decline of sales in the last ten years and difficulties conforming to 2010 Australian
government regulation about reducing fire risks.
2)- Pakistan Tobacco Company Limited (PTC) is a subsidiary of the British American Tobacco
(BAT). The Company was incorporated in Pakistan in 1947 making it one of the first
multinationals in Pakistan. Starting from a single warehouse near Karachi port, the Company is
now the largest cigarette manufacturer in Pakistan. Pakistan Tobacco Company Limited is a
commercial enterprise and our primary role is to build long term shareholder value by meeting
consumers’ preferences for high-quality tobacco products. Transnational tobacco companies
have had a presence in Pakistan for over 50 years. British. Making it one of the first foreign
companies in the newly established country (1); PTC “inherited the business previously
conducted by Imperial Tobacco Co., Tobacco Manufacturers India and ILTD [Indian Leaf
Tobacco Development]” (1). Philip Morris (PM) entered the Pakistani market in August 1967,
obtaining interests in Premier Tobacco Industries Ltd (PTI) through its purchase of the British
holding company Godfrey Phillips Ltd (2). There is no shortage of domestic tobacco companies
in Pakistan, including Sarhad Cigarette Industries Ltd and Souvenir Tobacco Co. Ltd (3).
However, transnational tobacco companies, which included Rothmans International until 1998,
have been the dominant force in the manufacture, marketing and sale of tobacco products in
Pakistan. In practice, as one BAT document suggests, “there are only two global tobacco
competitors, PM and BAT” (4). This report describes the activities of transnational tobacco
companies in Pakistan from 1992 to 2002 in five key areas.

 The economics of tobacco

 Smuggling of cigarettes into Pakistan
 The influence of the tobacco industry on science
 Sports sponsorship by the tobacco industry
 The effect of tobacco industry activities on health equity.

The principle of Responsible Product Stewardship is the basis on which we meet consumer
demand for a legal product that is a cause of serious diseases. Therefore, our products and brands
should be developed, manufactured and marketed in a responsible manner. We also aspire to
develop tobacco products with critical mass appeal that will, over time, be recognized by
scientific and regulatory authorities as posing substantially reduced risks to health.
3)- Khyber Tobacco Company (KTC) A public limited company is renowned in tobacco and
cigarette industry from last 5 decades. Khyber tobacco has achieved the heights of business with
its clear and ambitious vision, high quality and vigilant team and enjoying the status of top few
companies of Pakistan in tobacco industry. The company has extended its operation around the
world with an established distribution network in parts of Eastern Europe, South and West
Africa, Central and South Asia and the Middle East.

With internationally recognized brands, a fully integrated production facility, and a wealth of
experience and expertise KTC is in an ideal position to provide leaf and blended tobaccos. We
have high quality brands, private label cigarettes, filter-rod and other non-tobacco materials in
our portfolio. Our team of industry experts aim to introduce well researched brands after rigorous
testing and blending of tobaccos from around the world to give the customer distinctively
valuable experience. KTC has a strong foothold in its native country with a modern fully
integrated production facility aimed at export quality brands and a vast and well established sales
and distribution network.

As mentioned earlier, management is focusing on local as well foreign markets for both
cigarettes and tobacco, especially retried tobacco because foreign market has a demand for
Pakistani tobacco. The Company expects a good performance in both the tobacco and cigarette
export sector in the coming financial year which will enable the Company to earn handsome
profits. Tobacco export has been the main source of profitability of the Company in the past
couple of years. However, the export of Pakistani Tobacco is faced with numerous problems in
the Export market mainly increasing costs, cultivation of non-recommended varieties of Tobacco
by Pakistani Farmers and increased ratio of Non-Tobacco Related Material (NTRM) in the
Tobacco. The Company is endeavoring to overcome these hurdles in export of Pakistani Tobacco
and the efforts by the Company have finally started to bear results. We are hopeful that in the
upcoming year, the Company will achieve targets to enhanced level of export sales. Management
is continuously endeavoring to improve quality of processing to compete with international
competitors for which purpose the management has up-graded the Primary Production
Department (PPD) and Cigarette Making Department (CMD) to further improve the quality of
Re-dried Tobacco and Cigarettes. The ability to produce quality product will also enable the
Company to expand local and International sales by working on brand recognition and
developing customer loyalty