The Economic Analysis of Tobacco Industry: A Case Study of Tobacco Production in Pakistan

Abstract

This study investigates the significance of Tobacco industry particularly in the economic perspective of Pakistan economy. Tobacco is an important cash crop of Pakistan which benefits the economy by its multiple consumptions. The Tobacco industry is the only industry in the country which makes prompt payments to its growers for their crops. It also makes a contribution to the government exchequer in the form of taxes and foreign remittances. The Tobacco industry provides employment opportunities to a large number of people who are involved in the farming, production and trading of Tobacco products in the country. According to the estimation, approximately 11 million peoples are directly and indirectly employed in the Tobacco industry. Tobacco is the only crop of Pakistan whose yield is above the world average and matches with per hectare yield of America and other developed countries around the globe.

Keywords: Tobacco Industry, Production, Pakistan Economy, Economic Development, Cash Crop