ISLAMABAD: Several illegal cigarette factories in Azad Jammu and Kashmir (AJK) have allegedly resumed operations ahead of upcoming elections, with sources claiming that officials and political figures are facilitating the network despite previous crackdowns on tax evasion and non-duty-paid tobacco production.
According to sources, at least five cigarette factories operating in Bhimber are allegedly paying monthly bribes worth around Rs50 million to continue functioning without interference. The allegations involve certain officials from the AJK Inland Revenue Department as well as an influential government minister accused of providing protection to the factories.
Sources said a number of manufacturing units that were shut down during the tenure of former AJK prime minister Chaudhry Anwar ul Haq have become operational again in recent weeks.
The allegations further claim that financial arrangements are being made with factory owners to support election-related expenditures ahead of the AJK polls. Some sources also alleged that a senior minister has been receiving large monthly payments linked to the illegal tobacco trade. No official response has been issued regarding the claims.
Smuggling routes and enforcement concerns
According to sources, non-duty-paid cigarettes produced in AJK are being transported to different cities in Pakistan through routes connected to Sialkot and Gujrat, causing major losses to tax revenues.
Sources also claimed that authorities recently raided an illegal cigarette manufacturing unit allegedly operating under the cover of a dairy farm on the directives of the AJK prime minister. However, the same facility reportedly resumed operations weeks after the raid.
The allegations also suggest that certain politically influential individuals are using references to federal institutions to prevent enforcement action against some factories.
Sources further claimed that former prime minister Chaudhry Anwar ul Haq had previously rejected an alleged Rs3 billion offer from individuals associated with the illegal cigarette sector.
Earlier, Defence Minister Khawaja Asif had raised concerns in the National Assembly about alleged attempts by the illegal cigarette industry in AJK to influence upcoming elections through financial means.
