On December 3, 2025, two major crackdowns on illicit trade and narcotics swept across South Asia, underscoring the region’s intensifying efforts to combat tax evasion and drug trafficking. In Pakistan, the Federal Board of Revenue (FBR) launched a sweeping enforcement drive against tax-evaded cigarettes, following direct orders from Prime Minister Shehbaz Sharif. Meanwhile, in India’s Himachal Pradesh, authorities escalated their battle against narcotics, revealing deep-rooted challenges that even reach into government ranks.
According to reports from The Tribune and other local outlets, the FBR’s operations in Pakistan have targeted cigarette manufacturers and transporters implicated in multi-million-rupee tax evasion schemes. Five First Information Reports (FIRs) were registered, each detailing elaborate networks designed to circumvent excise duties and deprive the state of significant revenue. The crackdown comes after Prime Minister Sharif’s public directive to tackle the chronic issue of tax evasion in the tobacco sector—an industry long plagued by shadowy dealings and under-the-table distribution channels.
FBR teams intercepted several consignments of non-stamped cigarettes near the Bahera Interchange in Sargodha, a major transport hub. In one notable incident, a vehicle loaded with products from Universal Tobacco Company was detained, with officials estimating evaded taxes at a staggering Rs 11.494 million. This was only the tip of the iceberg. Two further FIRs were registered against Souvenir Tobacco Company after authorities seized 250 cartons from vehicle LES-4551 and 180 cartons from JZ-2452. The tax loss in these cases alone was pegged at Rs 27.458 million.
The operation didn’t stop there. Another FIR documented the recovery of 62 packets of non-Tax Stamp System (non-TTS) cigarettes outside Souvenir Tobacco Company’s Green Leaf Threshing warehouse in Mardan—a region with a history of illicit tobacco activity. Wembley Tobacco Industries also came under scrutiny after three separate vehicles (AH-0444, RIN-571, and LES-8912) were stopped near the interchange, each carrying hundreds of cartons of non-stamped cigarettes. The estimated tax evasion in this case soared to Rs 47.018 million.
Perhaps the most dramatic episode unfolded during a search of Indus Tobacco Company’s unregistered godowns in Mardan. As FBR officers seized a large cache of non-TTS and TTS cigarettes—totaling 246.5 units (measured in sticks or kilogram-equivalent)—they found themselves surrounded by approximately 25 armed men. According to the official FIR, the group blocked the officers’ exit, issued threats, and attempted to forcibly recover the confiscated goods. The tense standoff highlighted the risks faced by enforcement teams and the lengths to which some actors will go to protect their illicit operations.
The FBR is now investigating how non-tax-paid cigarettes are leaving factories that, at least on paper, are monitored under Section 40-B of the Sales Tax Act. All accused parties are facing prosecution under Sections 3 and 45A of the Federal Excise Act, 2005. The message from Islamabad is clear: the era of unchecked tax evasion in the cigarette sector may finally be coming to an end, though not without resistance.
Across the border in Himachal Pradesh, India, the fight against illegal trade has taken a different but equally urgent form. At a high-level meeting chaired by Chief Minister Sukhvinder Singh Sukhu in Dharamsala, officials reviewed the state’s aggressive crackdown on narcotics. Over the past three years, the state has registered 5,642 cases under the Narcotic Drugs and Psychotropic Substances (NDPS) Act—a 28% increase. The number of arrests, 8,216, reflects both the scale of the crisis and the government’s determination to root out the problem.
What has truly alarmed authorities, however, is the discovery of government insiders—sixty employees, including fifteen police officials—caught up in the drug trade. Five of these individuals have already been dismissed, and legal proceedings against the remaining suspects are underway. The revelations have sent shockwaves through the state bureaucracy and underscored the complexity of the challenge at hand.
Chief Minister Sukhu didn’t mince words, calling for a “mass movement” to combat the scourge of drugs, particularly synthetic substances like chitta. He ordered the deployment of specialized CID and police units in 234 sensitive panchayats identified as high-risk zones. Deputy Commissioners have been tasked with establishing anti-drug committees in these vulnerable areas to tighten surveillance and improve coordination. The meeting saw participation from representatives of the Narcotics Control Bureau, Enforcement Directorate, Directorate of Revenue Intelligence, and other central agencies—signaling an inter-agency approach to the crisis.
In a move designed to hit traffickers where it hurts, district administrations have been directed to identify properties amassed through drug money by December 10, 2025. The Chief Minister warned that illegal assets would be demolished and those involved prosecuted to the fullest extent of the law. To galvanize public participation, the government will soon launch district and sub-division-level anti-chitta walkathons, aiming to raise awareness and encourage community involvement.
The state’s strategy is two-pronged: strict enforcement, coupled with robust rehabilitation and counseling services. Drug testing is now mandatory for all government recruitment, while monitoring of cannabis cultivation and inspections of pharmaceutical units have been ramped up. The “Chitta Information Reward Scheme” has been rolled out, offering incentives ranging from Rs 10,000 to Rs 10 lakh for credible information on drug trafficking. Payments are promised within 30 days, and tips can be submitted through the 112 helpline or at the nearest police station.
Both Pakistan and India’s recent crackdowns underscore a new era of vigilance in South Asia’s fight against illicit trade and narcotics. While the challenges are formidable—ranging from entrenched interests and armed resistance to corruption within the ranks—the determination of state authorities appears stronger than ever. For both countries, success will depend not just on enforcement, but on building a culture of accountability and public engagement that leaves no room for the shadow economy to thrive.
With government resolve hardening and community initiatives gaining traction, the coming months may prove decisive in shifting the balance against those who profit from tax evasion and drug trafficking—one raid, one arrest, and one tip at a time.