AGL 37.99 Decreased By ▼ -0.03 (-0.08%)
AIRLINK 215.53 Increased By ▲ 18.17 (9.21%)
BOP 9.80 Increased By ▲ 0.26 (2.73%)
CNERGY 6.79 Increased By ▲ 0.88 (14.89%)
DCL 9.17 Increased By ▲ 0.35 (3.97%)
DFML 38.96 Increased By ▲ 3.22 (9.01%)
DGKC 100.25 Increased By ▲ 3.39 (3.5%)
FCCL 36.70 Increased By ▲ 1.45 (4.11%)
FFBL 88.94 No Change ▼ 0.00 (0%)
FFL 14.49 Increased By ▲ 1.32 (10.02%)
HUBC 134.13 Increased By ▲ 6.58 (5.16%)
HUMNL 13.63 Increased By ▲ 0.13 (0.96%)
KEL 5.69 Increased By ▲ 0.37 (6.95%)
KOSM 7.32 Increased By ▲ 0.32 (4.57%)
MLCF 45.87 Increased By ▲ 1.17 (2.62%)
NBP 61.28 Decreased By ▼ -0.14 (-0.23%)
OGDC 232.59 Increased By ▲ 17.92 (8.35%)
PAEL 40.73 Increased By ▲ 1.94 (5%)
PIBTL 8.58 Increased By ▲ 0.33 (4%)
PPL 203.34 Increased By ▲ 10.26 (5.31%)
PRL 40.81 Increased By ▲ 2.15 (5.56%)
PTC 28.31 Increased By ▲ 2.51 (9.73%)
SEARL 108.51 Increased By ▲ 4.91 (4.74%)
TELE 8.74 Increased By ▲ 0.44 (5.3%)
TOMCL 35.83 Increased By ▲ 0.83 (2.37%)
TPLP 13.84 Increased By ▲ 0.54 (4.06%)
TREET 24.38 Increased By ▲ 2.22 (10.02%)
TRG 61.15 Increased By ▲ 5.56 (10%)
UNITY 34.84 Increased By ▲ 1.87 (5.67%)
WTL 1.72 Increased By ▲ 0.12 (7.5%)
BR100 12,244 Increased By 517.6 (4.41%)
BR30 38,419 Increased By 2042.6 (5.62%)
KSE100 113,924 Increased By 4411.3 (4.03%)
KSE30 36,044 Increased By 1530.5 (4.43%)

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, would provide up to $50.2 million in financing to support Armstrong ZE Pvt. Ltd. in developing a greenfield tyre manufacturing facility in Pakistan.

According to a press release issued on Monday, the facility will be established in Gharo, Sindh to boost local tyre production.

“The financing comprises a $25 million loan from IFC alongside an up to $25.2 million equivalent investment in Pakistani rupees from local banks,” read the statement.

IFC said the project will introduce a locally manufactured international brand to Pakistan.

“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,” it said.

IFC commits $1.5bn in short, long-term investments

IFC shared that the number of registered vehicles in Pakistan has steadily grown 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,” it said adding that the reduction in these imports will also help improve the cash-starved country’s foreign currency reserves.

Armstrong ZE Pvt. Ltd. is a wholly owned company established of Pakistani origin, involved in the tyre business with operations in more than eighty-five countries.

“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,” said Azim Yusufzai, Chairman of Armstrong ZE.

“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.”

Equity and debt financing: IFC providing up to $35m to SAFCO Venture

As per the press release, IFC will also be supporting Armstrong through its Responsible Investing Support in Emerging Economies (RISE) advisory program, which will strengthen Armstrong’s climate risk management, resource efficiency, and environmental and social processes.

“IFC is committed to improving Pakistan’s value-added manufacturing capacity by partnering with strong companies that can scale up production,” said Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan, and Afghanistan.

“This investment exemplifies this commitment and will help improve consumer access to tyres while spurring the economy through job creation, increased productivity, and reduced reliance on imports,” he added.

HSBC, World Bank’s IFC launch $1bn trade finance programme for emerging markets

Meanwhile, Advisor to Finance Minister Khurram Schehzad 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 reserves for the country,” said Shehzad, adding that investor confidence has increased, and the investment environment is improving steadily.

Comments

200 characters