Phillips Morris Pakistan Limited (PMPLK), the country’s second largest tobacco company by market share, plans to bring an additional investment of $100 million to upgrade its existing plants and factories in the South Asian nation.
PMPLK is an affiliate of Phillips Morris International which acquired a majority stake in local business in 2007 with an initial investment of over $700 million and is one of the largest tax-payer companies with employees over 2200. A public limited company, PMPLK is listed on the Karachi and Lahore Stock Exchanges.
Joseph Ziomek, Director Finance and Sekar Menon, Director Corporate Affairs of Philips Morris Pakistan Limited met with Chairman Pakistan’s Board of Investment, Dr. Miftah Ismail, to discuss different investment opportunities available in Pakistan, says an August 18 government announcement.
Ismail informed them that Pakistan has one of the most liberal foreign investment regimes in South Asia. 100% foreign equity is permitted in the manufacture and infrastructure sectors as the country has a more market-oriented economy, with rapidly growing private sector.
Currently, PMPKL has a tobacco-leaf threshing plant, three cigarette manufacturing factories and sales offices across the country.
Pakistan has a huge number of smoking tobacco consumers which is common both in urban and rural areas. People in rural areas usually smoke Hukkah (water pipes) which use raw tobacco, while in urban areas use Sheesha and cigarettes.
According to a National Health Survey of Pakistan in 2005, one out of every two to three middle-aged men smoked cigarettes. Overall prevalence of smoking in 2005 was 15.2 percent. The highest prevalence was reported in men aged 40-49 years, accounting for nearly 41 percent of Pakistan’s total smokers.