Tyre problems
Influx of smuggled tyres are so great that industry is unable to sustain a level of sales that would turn a profit.
Pakistan only produces around 20 per cent of its annual tyre consumption and the industry is clearly struggling.
It is impossible to accurately measure the scale of smuggled goods into Pakistan, particularly from Afghanistan, but there is one area where figures do appear to be if not accurate, then a reasonable approximation. Every wheel needs a tyre and Pakistan consumes around 8.25 million of them every year. Smuggled tyres, mostly from Afghanistan, now constitute around 32 per cent of sales and indigenous manufacturers are feeling the pinch. There has reportedly been a rise in smuggled tyres in recent months and tyre industry representatives are rightly angry that so little is being done to stop the flow of illegal goods. The influx is said to be so great that the industry is unable to sustain a level of sales that would turn a profit.
Our industries all suffer a variety of impediments and one would have thought the government would be bending over backwards to protect local businesses and jobs. That does not appear to be the case here. The government cannot be unaware of the situation and a local tyre manufacturer has suggested that the FBR Intelligence and Investigation wing conduct raids on the tyre markets in Rawalpindi and confiscate those goods that do not have the appropriate documentation. That would certainly seem to be the commonsense solution but it does not take into account the fact that a lot of people will have been paid large sums of money to look the other way whilst the illegal tyres made the crossing from Afghanistan, and for such a volume of tyres to be smuggled it suggests that there are very large vested interests in play.
Pakistan only produces around 20 per cent of its annual tyre consumption and the industry is clearly struggling. A government turning a blind eye to rampant criminal activity at the expense of indigenous industry can hardly be said to be working for the betterment of all. An early crackdown on the smugglers would be welcomed, though not by those pocketing the bribes.
Published in The Express Tribune, April 30th, 2014.
Our industries all suffer a variety of impediments and one would have thought the government would be bending over backwards to protect local businesses and jobs. That does not appear to be the case here. The government cannot be unaware of the situation and a local tyre manufacturer has suggested that the FBR Intelligence and Investigation wing conduct raids on the tyre markets in Rawalpindi and confiscate those goods that do not have the appropriate documentation. That would certainly seem to be the commonsense solution but it does not take into account the fact that a lot of people will have been paid large sums of money to look the other way whilst the illegal tyres made the crossing from Afghanistan, and for such a volume of tyres to be smuggled it suggests that there are very large vested interests in play.
Pakistan only produces around 20 per cent of its annual tyre consumption and the industry is clearly struggling. A government turning a blind eye to rampant criminal activity at the expense of indigenous industry can hardly be said to be working for the betterment of all. An early crackdown on the smugglers would be welcomed, though not by those pocketing the bribes.
Published in The Express Tribune, April 30th, 2014.