The skyrocketing of cigarette prices in Pakistan has reduced tobacco demand in Pakistan as smokers choose to quit instead of diverting to another brand.
Pakistan Institute of Development Economics carried out a research study titled “Switch, Reduce or Quit: How do smokers respond to tax increases on tobacco in Pakistan.” The results are interesting as their research states that a 50% increase in prices has caused 91% of smokers to quit smoking or reduce intake while 9% will switch to other brands. Furthermore, of the 9% who would switch,15% are considering redirecting themselves towards non-tobacco products.
