The latest development in Pakistan's efforts to combat the illicit cigarette trade involves a significant meeting between Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and a delegation from British American Tobacco (BAT) and Pakistan Tobacco Company (PTC). According to Business Recorder, the Finance Minister emphasized the importance of fiscal sustainability through 'equitable taxation, improved compliance across all sectors, and decisive action to curb leakages and illicit activity.' The government has implemented AI-led CRM systems and track-and-trace initiatives, resulting in record seizures of illicit cigarettes this year. The BAT delegation expressed appreciation for these efforts but highlighted concerns over 'excise stability' and the 'widening price differential between formal and illicit products,' which affect the sector's growth and export competitiveness, particularly in markets like Saudi Arabia.