Govt express delight as reduction in Smuggling increase local Tyre Cos profits

The Ministry of Commerce (MoC) has expressed delight over increase profits earned by the local tyre companies amid government successful efforts to curb cross border smuggling.

“MoC has always believed that rationalising tariffs boosts economic activity, reduces smuggling and enhances industrial growth. It is heartening to note that reduction of tyres' smuggling has resulted in increased revenues for local companies & same is happening in other sectors.,” said Advisor to Prime Minister on Trade and Investment Abdul Razak Dawood in a series of tweets on Wednesday.

The advisor was of the view that the incumbent government has successfully stopped the process of de-industrialisation and is now working towards industrial expansion. “This will not only bring in FDI but it will also be reflected as increase in our exports,” he said.

The statement comes Pakistan’s premier tyre manufacturer General Tyre has earned a profit after tax of 406 million rupees in the first six months of the current financial year despite tough economic conditions because of covid-19, against the profit after tax of 29.4 million rupees in the same period of last year.

Chief Executive Officer General Tyre Hussain Kuli Khan, while commenting on the improved profits of the company stated that strict surveillance of the borders during covid-19 played a positive role in the company’s performance.

“This was the reason that smuggled tyres were not available in the local market which helped the local industry’s share to grow,” he added.