Pakistan Tobacco Company Emphasises Resilience and Transformation in 2025
Pakistan Tobacco Company Limited (PTC) has highlighted resilience, innovation, operational excellence and sustainability as key themes in its 2025 Annual Report, titled “Power of Belief.” The report presents the company’s evolution from a traditional tobacco business into a broader, multi-category organisation while outlining its ongoing transformation under the wider BAT Group strategy.
Established in 1947, PTC says it has grown from a single warehouse near Karachi port into one of Pakistan’s leading FMCG companies. The company operates manufacturing facilities in Jhelum and Akora Khattak and has expanded its activities through modern manufacturing, digital transformation and newer product categories. Its Jhelum facility also serves as an export hub for modern oral products shipped to markets including Japan, Hungary, France and Peru.
Focus on Operational Excellence
Operational efficiency remained an important area for PTC during 2025. According to the report, the company maintained product availability despite transportation disruptions and supply-chain pressures. It also introduced the Ultimate Control Tower, designed to improve end-to-end visibility and support faster decision-making.
The company also continued its digital transformation programme. Its operations are increasingly aligned with Industry 4.0 principles, using technologies such as the Internet of Things, business intelligence, artificial intelligence and cloud computing. The report highlights Octagon, a business intelligence platform, and Dextor, an AI-powered digital assistant designed to respond to technical queries in a multilingual environment.
PTC also reported progress in local sourcing, saying more than 55% of its materials had been transitioned to local sources as part of its procurement localisation efforts.
Sustainability Takes a Central Role
Environmental sustainability is another major theme of the report. PTC says its Scope 1 and 2 CO₂ emissions fell from 20,611 thousand tons in 2020 to 9,680 thousand tons in 2025, representing a 53% reduction. The company attributes the progress to measures including biomass energy, renewable energy certificates, solar power and improvements in HVAC operations.
The company also reported water recycling rates of more than 48% at both factories and highlighted its adoption of a 200-hectare forest conservation site in Nizampur in collaboration with the Government of Khyber Pakhtunkhwa’s forest department.
Waste management was another area of reported progress. PTC stated that its factories achieved a 99% waste recycling rate and reached zero tonnes of waste sent to landfill in 2025.
Investment in Employees and Communities
The annual report also places significant emphasis on people development. In 2025, PTC introduced or continued programmes such as Rising Leaders, Accelerate, Transcend and Uraan, aimed at strengthening leadership, professional and technical capabilities.
The company reported a number of employee engagement initiatives, including town halls, sports activities and wellbeing programmes. It also highlighted its inclusion efforts and said its Inclusion Survey recorded an 89% response rate and an Inclusion Index Score of 85%.
Beyond its workforce, PTC reported community programmes covering education, youth skills, farmer livelihoods and healthcare. During 2025, the company said it supported 50 summer camps involving more than 2,500 children and operated 10 Youth Skills Development Centres with 500 students enrolled. It also reported that its 12 Mobile Doctor Units reached communities across 11 districts in Khyber Pakhtunkhwa and Punjab.
Expanding Beyond Traditional Tobacco
The report describes PTC’s move toward a multi-category portfolio, including its modern oral product VELO, which was launched in Pakistan in 2019. The company says the portfolio includes different nicotine strengths and pouch formats.
At the wider BAT Group level, the strategic direction centres on building a predominantly smokeless business by 2035 and expanding its portfolio of non-combustible products. The report says this strategy is intended to support the Group’s longer-term transformation.
Looking Ahead
PTC’s 2025 annual report presents a company focused on adapting to changing markets while investing in technology, people, sustainability and new product categories. Its stated priorities include operational efficiency, responsible sourcing, environmental initiatives, community development and continued transformation.
The report’s message of “Power of Belief” reflects PTC’s view that resilience and long-term progress depend on purpose, integrity, innovation and shared ambition.
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