Business Desk 
Dec 23, 2024
International Finance Corporation (IFC) partnered with a consortium of local banks, such as HBL, Meezan Bank, Bank Alfalah and Habib Metropolitan Bank, investing up to $50.2 million equivalent in financing to support Armstrong ZE Pvt. Ltd. in developing a greenfield tyre manufacturing facility in Gharo town, Sindh to increase local tyre production in Pakistan.
This programme will introduce a locally manufactured international brand to Pakistan, which will enhance consumer access to quality, affordable tyres while strengthening local supply chains, creating jobs and boosting private sector-led growth.
The financing involves a $25 million loan from IFC alongside an up to $25.2 million equivalent investment in Pakistani rupees from local banks.
The project is likely to create over 1,800 direct and indirect jobs, along with helping to boost the competitiveness of the sector through technology and know-how transfers.
Notably, the number of registered vehicles in Pakistan has grown steadily over the last decade, reaching around 30 million vehicles in 2023, including 23 million two-wheelers, while local tyre manufacturing remains constrained due to a lack of technical expertise, technology and a substantial informal market, making the country heavily dependent on imports.
Armstrong ZE Chairman Azim Yusufzai stated: “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. 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.”
“Together, we aim to foster innovation, create employment opportunities, and contribute to sustainable development in our communities and beyond. This collaboration marks a monumental step forward in advancing our mission to deliver world-class, sustainable, and innovative tyre solutions to the Pakistani market,” Yusufzai added.
However, the IFC will be supporting Armstrong through its Responsible Investing Support in Emerging Economies (RISE) advisory program, which will boost Armstrong’s climate risk management, resource efficiency, and environmental and social processes.
IFC’s Regional Director for the Middle East, Pakistan, and Afghanistan, Khawaja Aftab Ahmed said: “IFC is committed to improving Pakistan’s value-added manufacturing capacity by partnering with strong companies that can scale up production.”
“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,” Ahmed added.
The project is said to use the company’s long-standing experience in the tyre industry, through its UAE-based company, Zafco Group Holding, which operates as a global importer and exporter of tyres, batteries, and lubricants, with a presence in over 85 countries, along with Zafar Enterprises, a leading tyre distributor in Pakistan.
