The International Finance Corporation (IFC), a member of the World Bank Group, and a consortium of Pakistani banks, including HBL, Meezan Bank, Bank Alfalah, and Habib Metropolitan Bank, have announced a financing package of up to $50.2 million to support Armstrong ZE Pvt. Ltd. in establishing a greenfield tyre manufacturing facility in Gharo, Sindh.
According to a press release, the financing includes a $25 million loan from IFC and up to $25.2 million equivalent in Pakistani rupees from local banks. The project is expected to introduce a locally manufactured international tyre brand to Pakistan, creating over 1,800 direct and indirect jobs and transferring technology and expertise to the domestic market.
The new facility is designed to address the increasing demand for tyres in Pakistan, where the number of registered vehicles has grown steadily to approximately 30 million, including 23 million two-wheelers as of 2023. Despite this growth, local tyre manufacturing has lagged due to limited technical expertise, reliance on imports, and a substantial informal market. The project aims to reduce this dependency on imports, thereby helping to conserve Pakistan’s foreign exchange reserves.
Armstrong ZE Pvt. Ltd., a Pakistan-origin company operating in over 85 countries, expressed its commitment to shaping the future of tyre manufacturing in the country. “This investment is a strong vote of confidence in our vision and capabilities,” said Azim Yusufzai, Chairman of Armstrong ZE.
IFC will also provide advisory support through its Responsible Investing Support in Emerging Economies (RISE) program, aimed at enhancing Armstrong’s climate risk management, resource efficiency, and environmental and social governance processes.
Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan, and Afghanistan, highlighted the broader economic impact of the initiative, noting its potential to improve consumer access to tyres, spur job creation, and increase productivity while reducing reliance on imports.
Advisor to the Finance Minister Khurram Schehzad emphasised the project’s export potential, stating that it will not only cater to domestic demand but also help save and generate foreign reserves for the country. “Investor confidence is increasing, and Pakistan’s investment environment is steadily improving,” he remarked.
