ISLAMABAD: Pakistan’s tyre industry is set for further growth after a Chinese-backed joint venture announced a $120 million expansion plan, signaling rising export potential and investor confidence in the country’s manufacturing sector. The development was discussed during a meeting between Federal Minister for Commerce Jam Kamal Khan and Service Long March Tyres (Private) Limited.
Officials said the investment aims to scale up production and strengthen Pakistan’s position in global tyre markets, particularly in the United States and Brazil, where exports have grown rapidly in recent years.
Expansion and export targets
Company representatives informed the meeting that tyre exports are expected to reach $70 million by June 2026, with a target of exceeding $100 million in the following fiscal year. If achieved, the company could become one of Pakistan’s leading non-textile exporters within a short period.
Also Read: Strait of Hormuz tensions raise concerns over Pakistan’s import costs
Pakistan has already emerged as the fifth-largest tyre exporter to the United States and seventh-largest to Brazil, marking a significant shift from minimal market presence just a few years ago.
Role of technology and partnerships
Officials attributed this growth to technology transfer and expertise gained through collaboration with Chinese partners, which has enabled local manufacturers to meet international standards and compete globally.
The company’s production facility in Nooriabad was highlighted as a modern industrial unit employing around 2,000 workers. The plant also incorporates renewable energy solutions, supporting more sustainable manufacturing practices.
Government support and policy focus
Commerce Minister Jam Kamal Khan reaffirmed the government’s commitment to supporting export-oriented industries, emphasizing the importance of balanced tariff policies that encourage local production while maintaining competitiveness.
He said Pakistan is working to diversify its industrial base by promoting emerging sectors with strong growth potential, including tyre manufacturing.
Both sides agreed on the need for continued coordination between the government and industry to sustain export growth and attract further investment. Officials also emphasized policy stability and international partnerships as key factors in strengthening Pakistan’s manufacturing and export capabilities.
Today's E-Paper