The founder, chairman and chief executive of Pakistan-based Panther Tyres is calling on the government to curb under-invoicing of imported tyres so that domestic tyre manufacturers can compete on a level playing field.

But Mian Iftikhar Ahmed, who is also chairman of All Pakistan Tyres & Tubes Manufacturers Association of Pakistan (APTTMAP), says that tyre importers have successfully lobbied decision-makers to persuade the authorities not to clamp down on under-invoicing.

Importers mafia

Mian says the under invoicing of imported tyres has become “so colossal that the local manufacturers cannot make a profit.”

“I have raised my concerns as a chairman of APTTMAP over the last two years and we have been going from Lahore to Karachi to meet the relevant authorities, but the ‘importers mafia’ has been so strong that each time they got the meetings postponed,” Mian says.

Manufacturers under pressure

He argues that under-invoicing, smuggling, and misdeclaration have all been hurting Pakistan’s tyre manufacturing sector. The cost of a tyre manufacturing is about the same in Pakistan as it is in China. But an importer buying a US$100 tyre from China and declaring it at US$50 pays import duties only on that amount.

But a local manufacturer will pay all the duties and taxes on imports of raw materials and other facilities and end up either selling at a loss or, at best, breaking even. This is why Pakistan’s tyre industry is not flourishing Mian concludes.

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