KARACHI: The International Finance Corporation (IFC), a member of the World Bank Group, alongside a consortium of Pakistani banks including HBL, Meezan Bank, Bank Alfalah, and Habib Metropolitan Bank, will provide up to $50.2 million in financing to support Armstrong ZE Pvt. Ltd. in developing a greenfield tyre manufacturing facility in Gharo, Sindh.

According to a press release issued on Monday, the financing package includes a $25 million loan from IFC and up to $25.2 million in local currency investment from the participating Pakistani banks. The facility aims to boost local tyre production and introduce an internationally recognized brand to Pakistan. IFC highlighted that the project would create over 1,800 direct and indirect jobs while enhancing the competitiveness of the sector through technology and know-how transfers. The facility will also reduce Pakistan's reliance on imported tyres, which will help improve the country's foreign currency reserves.

The number of registered vehicles in Pakistan has grown steadily, reaching about 30 million in 2023, increasing the demand for locally produced tyres. However, local tyre manufacturing remains limited by technological constraints, and the country depends heavily on imports.Armstrong ZE Pvt. Ltd., a Pakistani-origin company, operates in over 85 countries and aims to revolutionize the local tyre industry. The project is also backed by IFC's Responsible Investing Support in Emerging Economies (RISE) advisory program to enhance climate risk management and environmental practices. This investment aligns with IFC's commitment to supporting value-added manufacturing and boosting Pakistan's economic growth through job creation and increased productivity.