Pakistan’s leading tyre manufacturer GTR Tyre has invested more than Rs 5 billion in the last five years or so as part of its continuous investment program to upgrade/improve its product quality. This continuous investment enables the company to contribute over Rs 4.30 billion annually to the national exchequer, besides providing employment.
But the local tyre industry is facing a huge threat to their survival in the shape of smuggling as the total estimated value of smuggled tyres comes to over Rs 300 billion, which results in the loss of over Rs 50 billion to the national exchequer.
Needless to mention that the local tyre industry, being an import substitute industry, has been saving precious foreign exchange and contributing to the country’s economy.
“Tyre is one of the top commodities which is being smuggled into Pakistan, thus ruining local industry badly and causing huge losses to the national treasury,” said GTR Spokesman.
Percentage of Smuggled Tyres
He added that the total tyre market of Pakistan is close to 14 million (excluding motorcycle/Rickshaw tyres) 15% of the demand is met through local production and 25% through imports, while the rest 60% are smuggled.
He said if this 60% smuggling is controlled, this gap could be filled by local manufacturers and legal imports, and ultimately GOP will get its legitimate revenues which is a need of time. “Smuggling continues unabated due to lack of coordination between the government authorities responsible for controlling it,” said GTR Spokesman.
He further stated that items under the guise of Afghan Transit Trade are either unloaded in Karachi or come back from the Afghan border via smuggling. “The government should re-evaluate the data of the items being imported via the ATT and see if the vehicle population in Afghanistan supports the numbers of tyres being imported,” suggested GTR Spokesman.
The Mode of Smuggling
As confirmed from our local sources, the smuggled tyres are being transported from Dubai either in containers or boats, then gets unloaded in Karachi from where they are being further distributed in different parts of the country.
He added that this needs to be addressed, and the customs department should ensure that this facility is not misused.
“The government should protect the local industry and national treasury from the damage caused by smuggling. Effective measures have to be taken to curb the smuggling to improve the competitiveness of the local industry and to provide equal business opportunities,” said GTR Spokesman.
It is pertinent to mention here that GTR was established in 1963 and started production in 1964. It is the only local tyre manufacturing company with a technical affiliation with Continental Germany. Tyres are produced to meet the local road conditions.
The company manufactures steel belted tubeless radial tyres for cars and light trucks while cross-ply tyres for light trucks, trucks/buses, tractors, bikes, rickshaws, and OTR.
Also, the company is one of the largest and trusted OEM suppliers maintaining high-quality standards and reliability as its tyres are tested in Japan and Europe to meet quality standards demanded by OEMs. It has also acquired “E” certification for its products.
