A Chinese tyre manufacturing company has announced an investment of $120 million in Pakistan’s tyre industry during high-level meetings with the prime minister and the federal minister for commerce, marking a significant step in strengthening economic ties between the two countries.
The announcement was made by a four-member delegation led by Jin Yongsheng, chairman of the Chinese tyre firm, during a meeting with Prime Minister Shehbaz Sharif.
The delegation praised Pakistan’s investor-friendly environment and the government’s economic policies, while also briefing the Prime Minister on new investment plans related to Service Long March Tyres.
The delegation later met Federal Minister for Commerce Jam Kamal Khan, where both sides discussed large-scale investment in the tyre sector and explored ways to increase tyre exports from Pakistan.
Speaking during the meeting, Prime Minister Shehbaz Sharif said that the government is working on a priority basis to expand business-to-business relations between Pakistan and China.
He emphasised that Pakistan believes in a sustainable, transparent and facilitation-based investment system.
The Prime Minister added that the government, through the Special Investment Facilitation Council (SIFC), is making continuous efforts to provide all necessary facilities to investors.
He noted that joint ventures such as Service Long March are vital for economic growth, job creation, technology sharing and increasing exports.
On the occasion, Chairman Jin Yongsheng appreciated Pakistan’s pro-investment policies and stated that the Board of Investment has been actively facilitating Service Long March Tyres in various sectors.
He added that the Board had provided all necessary support for the establishment of the company’s sole development zone in Nooriabad, Sindh.
He further informed the Prime Minister that the company is focusing on exports, with export revenue reaching $54 million during the fiscal year 2024–2025.
In a separate meeting with the Commerce Minister, the Chinese company outlined plans to increase exports by $70 million by June 2026, with expectations that tyre exports will exceed $100 million in the next fiscal year.
The delegation noted that the use of Chinese technology has helped bring Pakistan’s local tyre industry up to international standards. It added that Pakistan has become the fifth-largest exporter of tyres to the United States and the seventh-largest exporter to Brazil.
During discussions with the Commerce Minister, the company emphasised the need to maintain a 20 per cent import duty on tyres, arguing that lower duties on raw materials and leniency on finished tyre imports could harm the local industry.
In response, Jam Kamal Khan assured full government support for the tyre industry, stating that every possible facility would be provided to promote export-orientated sectors.
He added that the Pakistan-China industrial partnership is a major factor behind the growth of the tyre sector, and closer cooperation between the government and industry is expected to further boost exports.
