Pakistan misses out on taxes, investments due to tire smuggling: GTYR official An official of Ghandhara Tire and Rubber Company Limited (GTR) said that Rs 3,000 crore of smuggled tires enters Pakistan every year, causing a huge loss of Rs 5,000 crore to the country's finances and inhibiting investment in the industry. In an interview with reporters, he said that Pakistan's tire demand is close to 14 million (excluding motorcycle and rickshaw tires)

"Nearly 15 percent of total domestic demand is met through local production, while imports account for 25 percent," he said. "The remaining 60 percent is filled by smuggled tires." He believes that by curbing tire smuggling, the government can encourage at least five companies to enter the field by injecting new funds and incentivize existing companies to expand investment. "Reducing the inflow of smuggled goods will also save the country valuable foreign exchange and contribute to the economy in the form of job creation and an expanded tax net," the official said. He noted that smuggling flourished in the sector due to a lack of coordination among government authorities. According to him, smuggling is prevalent due to the abuse of the Afghan Transit Trade (ATT). "The government should re-examine the data on items imported through ATT and check if these figures are supported by the number of vehicles in Afghanistan," the official said. He stressed the need to address the issue and urged Pakistan Customs to ensure that ATT is not abused.