Tobacco cultivation forms the basis for the agrarian economy of the NWFP
Pakistan Tobacco Company is the largest cigarette manufacturing company in Pakistan. We also have a special relationship with the land and people of the NWFP that goes back over half a century.
KPK is the focal area in terms of tobacco related activities in Pakistan. It produces around three-fourths of the tobacco leaf grown in the country, and many of the cigarette manufacturing units are also located in this province.
Pakistan Tobacco Company plays a prominent role in the economy of KPK by generating revenue and employment in sectors such as farming, manufacturing and retailing. We also contribute significantly to the Government exchequer in the form of tax contributions, and to the social sector through our various Corporate Social Responsibility initiatives. The impact becomes more pronounced if the large investments made by the company in the form of machinery and infrastructure development are taken into consideration.
KPK produces around 77% of all tobacco leaf grown in Pakistan. The province also produces nearly all of Pakistan’s Flue Cured Virginia (FCV) and Light Air Cured (Burley) tobacco types. Sun Cured Rustica (White Patta) is also produced on a large scale. We proudly associate ourselves with the very first tobacco crop planted in the province. Furthermore, in 1948 we pioneered the cultivation of FCV tobacco in Pakistan. Pakistan is now the 7th largest producer of FCV tobacco in the world.
Within KPK, Swabi district has the largest area (13,584 hectares) under tobacco cultivation which accounts for 37% of total area utilized for tobacco cultivation in KPK. The district also leads in terms of the value of the tobacco crop produced i.e. Rs. 1,729 Million (value of crop produced in 2005), which accounts for 43% of total value of tobacco grown in the KPK.
The other two top districts by value are:
- Mardan: Value of tobacco crop produced in 2005, Rs. 813 Million
- Charsadda: Value of tobacco crop produced in 2005, Rs. 431 Million
The number of people engaged in the tobacco industry (full time, part time or seasonal) in any capacity, show the social significance of the industry in the province, whereas the Full-Time Equivalent (FTE) jobs denote the economic significance of the industry.
The number of people engaged for some part of the year in tobacco growing is much greater than the FTE measure of its employment impact. The cultivation of tobacco purchased by Pakistan Tobacco Company in the province is associated with the following labour inputs:
People supported by the activities of PTC
| 16,402|| 3,933|| 20,335|| 73,206|
Direct revenue in tobacco growing is an aggregate of wages of farm labour and the profits earned by farmers. Activities in the tobacco growing sector also create demand for goods and services from agronomy support sectors such as fertilizers, pesticides, seeds, utilities, etc., giving rise to indirect revenue. In 2006, PTC purchased 32% of the tobacco produced in the province. Total revenue in the farming sector in KPK, attributable to PTC in 2006, was approximately Rs. 1.7 Billion.