ISLAMABAD: Allegations of collusion between officials of the Azad Jammu and Kashmir (AJK) Inland Revenue Department and the illegal cigarette industry have emerged ahead of upcoming AJK elections, with sources claiming several previously closed factories in Bhimber have resumed operations.
According to sources familiar with the matter, at least five cigarette factories operating in Bhimber are allegedly paying monthly bribes amounting to nearly Rs50 million to continue production and avoid enforcement action. The allegations also implicate certain Inland Revenue officials and an influential government minister, who are accused of facilitating the operations in exchange for financial benefits.
Sources claimed that a number of cigarette manufacturing units shut down during the tenure of former AJK prime minister Chaudhry Anwar ul Haq have recently been reactivated. The alleged development comes ahead of the next electoral cycle in Azad Kashmir.
The sources further alleged that informal financial arrangements are being made with factory owners to generate funds linked to election-related activities. Claims are also circulating that a senior minister has allegedly received up to Rs80 million per month in payments tied to the illegal tobacco trade. No official confirmation of the allegations has been issued.
Claims of smuggling and enforcement gaps
According to the allegations, non-duty-paid cigarettes manufactured in AJK are being transported to different parts of Pakistan through routes connected to Sialkot and Gujrat, resulting in significant losses to the national exchequer.
Sources also claimed that an illegal cigarette manufacturing unit operating under the cover of a dairy farm was raided on the directives of the AJK prime minister a few weeks ago, but later resumed operations.
The allegations further state that an influential political figure in AJK has been using references to federal institutions to shield certain factories from enforcement measures.
Sources additionally claimed that former prime minister Chaudhry Anwar ul Haq had previously rejected an alleged Rs3 billion offer from individuals linked to the illegal cigarette industry.
Earlier, Defence Minister Khawaja Asif had raised concerns in the National Assembly regarding alleged attempts by the illegal cigarette sector in AJK to influence upcoming elections through financial means.
