The International Finance Corporation (IFC), in collaboration with local banks, is set to invest $52.2 million in a greenfield tyre manufacturing project in Pakistan, aiming to boost domestic production and export potential.
Backed by the Special Investment Facilitation Council (SIFC), this project highlights the increasing role of international financial institutions in stabilizing Pakistan’s economy.
The plant, located in the Gharo area of Sindh, will focus on producing high-quality tyres to meet domestic demand and enhance export capacity. The initiative is spearheaded by Armstrong ZE Private Company and features an investment of $50.2 million from IFC and local banks.
Job Creation and Economic Impact
The project is expected to generate over 1,800 jobs and strengthen the tyre industry by introducing advanced technology and globally competitive production standards. This will provide consumers with affordable, high-quality tyres while reducing dependence on costly imports.
Addressing Industry Challenges
Despite Pakistan’s vehicle count surpassing 30 million in 2023, including 23 million two-wheelers, the local tyre industry struggles with limited technical expertise and a dominant informal market. As a result, Pakistan relies heavily on imported tyres, which strain foreign currency reserves.
By ramping up local production, the project seeks to curb imports, boost foreign exchange reserves, and enhance competitiveness in the global market.
A Positive Sign for Pakistan’s Economy
The collaboration between IFC, local banks, and the SIFC demonstrates growing confidence in Pakistan’s development potential. This initiative reflects a broader trend of international financial institutions investing in projects aimed at economic stabilization and sustainable growth.
With this greenfield project, Pakistan moves closer to self-sufficiency in tyre production, paving the way for economic resilience and export-led growth.
