ISLAMABAD: Khyber Tobacco Company Limited (KHTC) has signed a Memorandum of Understanding (MoU) with South Korea’s KT&G Corporation to secure a royalty license for the cigarette brand “Pine Passion Sky.” The agreement marks an important step in the company’s plan to expand its product range and strengthen its position in Pakistan’s Tobacco market.
Khyber Tobacco is one of Pakistan’s leading cigarette manufacturers. KT&G is South Korea’s largest tobacco company and operates in many international markets.
The partnership reflects a growing trend in the global Tobacco industry, where companies are entering licensing agreements and brand collaborations to expand their product offerings and improve their market presence.
According to a notice submitted to the Pakistan Stock Exchange (PSX), the MoU serves as the first step toward a formal licensing agreement. Under the proposed arrangement, Khyber Tobacco plans to manufacture and market the Pine Passion Sky cigarette brand in Pakistan.
The agreement may also allow the company to market the brand in other territories if both parties mutually agree. However, the proposal remains subject to regulatory approvals, final commercial agreements, and other standard legal requirements.
The company clarified that the current MoU is not the final agreement. A separate announcement will be made through the Pakistan Stock Exchange once the definitive licensing agreement has been signed.
Khyber Tobacco said the proposed collaboration is expected to strengthen its product portfolio and improve its competitive position in the market. The company believes the agreement will also support its long-term business growth.
The expansion comes at a time when cigarette manufacturers are focusing on partnerships with international companies to introduce established brands into new markets. Such collaborations often help businesses increase brand recognition and attract a wider customer base.
KT&G is one of Asia’s leading tobacco companies and has built a strong international presence through exports and licensing agreements. Its products are available in dozens of countries, making it a well-known name in the global tobacco industry.
If the licensing agreement is finalized, Khyber Tobacco will gain the rights to produce and market the Pine Passion Sky brand under the agreed terms. This could strengthen the company’s position in Pakistan’s competitive cigarette market.
The company has also stated that additional information will be shared after the final agreement is completed and all required approvals are obtained.
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The proposed partnership highlights Khyber Tobacco’s strategy to expand its business through international collaboration while introducing globally recognized brands to the local market. Further updates are expected once the licensing process is officially completed.
