KARACHI: The International Finance Corporation (IFC) and local banks will invest $52.2 million in a new tyre manufacturing project in Pakistan.
The project aims to boost domestic production and reduce reliance on imports.
Backed by the Special Investment Facilitation Council (SIFC), the initiative highlights growing international support for Pakistan’s economic stabilization.
The tyre plant will be built in the Gharo area of Sindh. It aims to meet local demand and increase export potential by producing internationally standard tyres.
IFC and local banks will invest $50.2 million in Armstrong ZE Private Company for the project.
The initiative will create over 1,800 jobs and transfer advanced technology to the local sector. This will make tyres more affordable and improve their quality.
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Pakistan’s registered vehicle count reached 30 million in 2023, including 23 million two-wheelers. Despite this growth, local tyre manufacturing remains limited due to outdated technology and a large informal market.
The project seeks to address these gaps and reduce Pakistan’s dependence on tyre imports. Lower imports could improve the country’s foreign currency reserves.
This collaboration between international institutions and local stakeholders marks a positive step for Pakistan’s economy.
