Скачать или смотреть Greenfield tyre project: IFC local banks providing up to $50.2m financing The project in Gharo Sindh

ISLAMABAD: Advisor to the Finance Minister Khurram Schehzad has stated that the Greenfield tyre manufacturing facility project holds significant export potential, in addition to catering to a large domestic market.

The project aims to save and generate foreign exchange reserves for the country. He added that investor confidence has increased and the investment environment is improving steadily.

According to a statement issued by the International Finance Corporation (IFC); the IFC and a consortium of local banks, including HBL, Meezan Bank, Bank Alfalah and Habib Metropolitan Bank, are providing up to $50.2 million-equivalent in financing to support Armstrong ZE (Pvt) Ltd in developing a Greenfield tyre manufacturing facility in Gharo Town, Sindh to boost local tyre production.

The project will introduce a locally manufactured international brand to Pakistan, which will improve consumer access to quality, affordable tyres, while strengthening local supply chains, creating jobs and boosting private sector-led growth.

The financing comprises a $25 million loan from IFC alongside an up to $25.2 million equivalent investment in Pakistani rupees from local banks. The project is expected to create over 1,800 direct and indirect jobs and help increase the competitiveness of the sector through technology and know-how transfers.

The number of registered vehicles in Pakistan has grown steadily over the last decade, reaching approximately 30 million vehicles in 2023, including 23 million two-wheelers. However, local tyre manufacturing remains constrained due to a lack of technical expertise and technology and a substantial informal market, making the country heavily dependent on imports. Reducing these imports will also help improve Pakistan’s foreign currency reserves.

“Armstrong ZE is deeply honoured to have earned the trust and support of IFC and our partner banks; HBL, Meezan Bank, Bank Alfalah and Habib Metropolitan Bank. Their investment in this transformative project is not just a financial endorsement but also a strong vote of confidence in our vision, capabilities, and potential to shape the future of tyre manufacturing,” said Azim Yusufzai, chairman of Armstrong ZE.

“Together, we aim to foster innovation, create employment opportunities, and contribute to sustainable development in our communities and beyond. This collaboration marks a monumental step forward in advancing our mission to deliver world-class, sustainable, and innovative tyre solutions to the Pakistani market.”

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