KARACHI: Since last August, despite the measures taken by Pakistan customs, the smuggling of Indian-origin tyres has increased, resulting in millions of losses for the national exchequer.
In Pakistan, 14 million tyres are used annually, and only 15 percent of the demand is met by domestic production, while 50 percent of the demand is met by illegally imported tyres and 35 percent by legally imported tyres. Smuggled tyres are being transported to local markets via Torkham, Chaman, and Taftan borders, according to the sources. Most of the smuggled tyres are of Indian origin, sources told.
The General Tyres CEO Hussain Kuli Khan urged authorities to inspect the market and seize smuggled tyres to protect the local industry. As an additional step, the government should re-evaluate the data on the goods that are being imported through the Afghan Transit Trade (ATT). “This needs to be addressed and the customs department must ensure that this facility is not misused,” said Hussain Kuli.
He said the local industry was playing its role in providing revenue to the exchequer along with providing employment as his company alone contributes over Rs 3.2 billion annually to the national exchequer.
He further urged the government to take effective measures to curb the smuggling of tyres to improve the competitiveness of the local industry and provide equal business opportunities to the local industry.
Copyright Business Recorder, 2022
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