‘Devaluation hit GTR profit’

KARACHI: The exchange rate volatility in last few months had caused Ghandhara Tyre and Rubber Company Limited incur losses in the last quarter, GTR managing director Hussain Kuli Khan said on Wednesday.

The company recorded an exchange loss of Rs331 million in the nine months ended March 31, 2023, according to the MD. “Another issue that hurt the company’s finances was a heavy flood of smuggled tyres into Pakistan,” said Khan, adding most of the smuggled tyres were passenger car radial tyres openly available in the market, “which not only hurt the local tyre industry but deprive the government of revenue.”

He further stated that the main issue affecting the local tyre industry and specifically GTR was a restriction on opening letter of credits. “This caused a shortage of raw materials forcing the plant to operate below capacity, we even shut down for two weeks in April, and as a result our fixed overhead cost was not fully absorbed,” GTR MD said.