The prices of imported goods have risen at an exponential rate due to the plummeting value of the local currency. A recent report from Dawn has revealed that the prices of imported tires have surged by a massive 25 percent since January.

The prices of Bridgestone or Good Year tires used in mini passenger cars (155/65R13) have gone up to Rs. 15,000 in December, compared to Rs. 9,000 in January. Likewise, Bridgestone tires for subcompact and compact passenger cars (175/70R13 and 185/65R14) have increased from Rs. 8,100 up to Rs. 13,150.

Prices of Chinese tires for subcompact and compact cars (175/70R13 and 185/65R14) are now Rs. 7,000 and Rs. 8,500, compared to Rs. 5,500 and Rs. 6,500 earlier this year, whereas Dunlop tires for the same categories of cars (175/70R13 and 185/65R14) are priced at Rs. 8,950 and Rs. 10,750 as opposed to Rs. 7,350 and Rs. 9,275.

The prices of locally produced tires have witnessed an increase of 8 to 11 percent, the report added.

Pakistan Tire Importers and Dealers Association (PTIDA) Chairman, Ashraf Dharani, slammed the government’s stance, as per which, the imported tires are viewed as luxury items, whereas the rest of the world regards them as essential items.

He informed that the government has already increased the Regulatory Duty (RD) on imported tires, making them more expensive for the importers as well as the customers. He added that the increase in import taxes has created a tire shortage in the market, which has also driven up the prices of used (non-damaged) tires exponentially.

While showing appreciation for the locally produced tire market which covers a fair chunk of the local demand, Dharani stated that the local industry doesn’t have enough capacity to meet the rising demand for tires. Consequently, the traders are likely to resort to smuggling in order to keep up with the demand and keep their businesses afloat, he lamented.

Source: Pro Pakistani