Wednesday, February 21, 2024

Pakistan Lost Over Rs. 40 Billion Due To Tyre Smuggling

Industry stakeholders argue that Pakistan’s expanding budget deficit may be handled by reducing the amount of commodities smuggled out of the country, which is dealing a blow to the economy.

Further, they claim that illegal trading and smuggling of critical products such as pharmaceuticals, lubricants, vehicle spare parts, and tyres are costing the government a lot of money.

Tyre smuggling alone costs the government more than Rs40 billion every year, in addition to damaging the native economy.

However, the country’s annual tyre demand is estimated to be at 14 million pieces. Domestic production accounts for about 15% of total demand, while legal imports account for the remaining 35%. Whereas, the remaining 50% of demand is fulfilled by smuggled tyres.

Imports of tyres have recently decreased, owing to the State Bank of Pakistan’s requirement for a 100 percent cash margin on imports, as well as worldwide market instability.

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