PANAH Calls for Higher Taxes on Tobacco and Sugary Products to Protect Public Health and Avoid Cuts in Health, Education

Islamabad
The Pakistan National Heart Association (PANAH), in collaboration with leading civil society organizations and public health experts, has urged the Government of Pakistan to prioritize increased taxation on tobacco products, sugar-sweetened beverages, and other ultra-processed goods instead of imposing deep cuts on health and education budgets.
The call comes amid mounting global economic pressures and rising fuel costs linked to ongoing geopolitical tensions in the Middle East, which have prompted the government to reduce development spending and increase fuel prices. While these measures aim to address fiscal constraints, experts warn they risk undermining Pakistan’s long-term economic stability and human development.
Pakistan is currently facing a severe public health crisis driven by non-communicable diseases (NCDs), including cardiovascular diseases, diabetes, cancer, and chronic respiratory illnesses. These conditions account for nearly 58 percent of all deaths in the country, making them the leading cause of mortality. Diabetes alone has reached alarming proportions, with over 33 million adults affected, resulting in hundreds of thousands of deaths annually and placing immense strain on families and the healthcare system.
The economic toll of NCDs is equally staggering. Pakistan spends approximately USD 2.6 billion annually on diabetes treatment and management alone—an amount that exceeds significant external financial inflows. Additionally, productivity losses due to illness, absenteeism, and premature deaths continue to weaken the national economy.
A major driver of this crisis is the widespread consumption of tobacco and sugar-sweetened beverages. These harmful and non-essential products are directly linked to heart disease, obesity, diabetes, and cancer, yet remain significantly under-taxed.
General Secretary of PANAH, Sana Ullah Ghumman, emphasized that imposing additional financial burdens on the general public while ignoring the untapped revenue potential of taxing harmful products is both unjust and economically short-sighted.
“At a time when essential development budgets are being reduced, it is imperative to recognize that tobacco, sugary drinks, and ultra-processed products are not necessities—they are drivers of disease and death. Increasing taxes on these items can generate substantial revenue, reduce disease burden, and protect vulnerable populations,” he stated.
He further highlighted that global evidence consistently demonstrates that higher taxation on tobacco and unhealthy products leads to reduced consumption, improved public health outcomes, and increased government revenues.
PANAH and its partners stressed that reliance on fuel price hikes disproportionately impacts low-income households and fuels inflation. In contrast, progressive health taxation policies targeting harmful products offer a more equitable and sustainable solution.
Health experts also pointed out that the revenue generated from these industries falls far short of the healthcare costs incurred due to diseases associated with their consumption. Rather than contributing positively to the economy, the widespread use of ultra-processed products is exacerbating public health challenges.
PANAH warned that Pakistan cannot afford to compromise its future by cutting investments in human development while preventable diseases continue to rise unchecked. Taxing tobacco and sugary drinks presents a practical, evidence-based strategy to address both fiscal deficits and the growing health crisis.
The association, along with civil society stakeholders and public health experts, has called on the government to take immediate and decisive action to safeguard public health, strengthen the economy, and ensure a healthier future for all citizens.