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Pakistan Has Saved Over $410 Million in Forex Thanks to “Made in Pakistan” Smartphones

Zibago

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Pakistan Has Saved Over $410 Million in Forex Thanks to “Made in Pakistan” Smartphones


Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood has said that the government is determined to make Pakistan a hub of mobile phone manufacturing and export.


The advisor made these remarks while presiding over a meeting to examine the progress made towards the export of locally-manufactured mobile phones from Pakistan under the Make-in-Pakistan policy.

The import of manufactured or completely built units (CBU) is on the decline while that of mobile phone components (CKD) is on the rise. During July-November 2021, the import of CBUs decreased by 73 percent to $179 million as compared to $661 million during the same period last year. This saved $410 million in foreign exchange. In contrast, the import of mobile phone components for local assembly increased by 407 percent to $674 million from $133 million last year.

“Our vision is to make Pakistan a hub of mobile phone manufacturing and export. The export of mobile phones will soon start which will earn foreign exchange for the country,” the advisor said.

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The advisor said that all over the world, smartphones have now become a necessity as many small- to medium-sized enterprises (SME) now run their businesses on mobile phones.

He said that at the start of this government, Pakistan was a net importer of mobile phones but the situation has now been reversed and jobs are also being created in this sector.

Earlier, the advisor was informed that in Pakistan, about 80 to 85 percent of the market is for phones priced at $200 or below. He was informed that as a result of the mobile phone manufacturing policy, which contains duty incentives for enhancing mobile phone assembling in Pakistan, the majority of phones cheaper than $200, are now assembled in Pakistan. It was told that this was complemented by the Pakistan Telecommunication Authority (PTA)’s Device Identification and Registration System (DIRBS) which has curbed the smuggling of mobile phones.

The meeting was further informed that in terms of market share, the Chinese manufacturers control about half of the market as they were quick to utilize the incentives offered by the government and hence have the “first-mover’s advantage” in the market. These assemblers are importing mobiles in semi knocked-down (SKD) condition which are then assembled in Pakistan. This is not only saving foreign exchange but also boosting industrial activity and creating employment. He was further informed that Samsung has also recently started assembling mobile phones in Pakistan.

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The advisor was informed that the success of the mobile phone manufacturing policy was also evident from the import figures during the first five months of the current fiscal year as compared to the same period in the previous year.
 

Pandora

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Still those who can afford or not dont let go of imported Iphones. Jaib mein paisa ho ya na ho iphone lazim ho.
 

Bilal9

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Earlier, the advisor was informed that in Pakistan, about 80 to 85 percent of the market is for phones priced at $200 or below. He was informed that as a result of the mobile phone manufacturing policy, which contains duty incentives for enhancing mobile phone assembling in Pakistan, the majority of phones cheaper than $200, are now assembled in Pakistan. It was told that this was complemented by the Pakistan Telecommunication Authority (PTA)’s Device Identification and Registration System (DIRBS) which has curbed the smuggling of mobile phones.

I don't know if this means that 85% of all phones sold locally are assembled in Pakistan. If so - this is an excellent development.

Of course we have to make the distinction between featurephones and smartphones. Featurephones (those that have physical keys) are still a majority of the market in the subcontinent for poorer folks. These phones typically are cheaper than $200, some are as cheap as $50.

Next step (if volume warrants, which is true) is making more expensive cellphone components locally in Pakistan instead of importing them (where possible), starting with expensive imported components like screens. But govt. has to help manufacturers with those screen factory investments (tariff support again)- because they are very capital intensive investments.

To be truly price-competitive in local market, as well as exports, Pakistani cellphone assemblers cannot be dependent for critical inputs like screen on import sources. The price may go up or the vendor may place odd conditions on sourcing if they sense that those conditions will make them some money...one Pakistani OEM screen-maker can serve a good portion of the local cellphone assemblers' needs. This is the case in Bangladesh.

But yes - all in good time. First step of placing higher tariff on CBU phones is excellent move.
 

Zibago

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I don't know if this means that 85% of all phones sold locally are assembled in Pakistan. If so - this is an excellent development.

Of course we have to make the distinction between featurephones and smartphones. Featurephones (those that have physical keys) are still a majority of the market in the subcontinent for poorer folks. These phones typically are cheaper than $200, some are as cheap as $50.

Next step (if volume warrants, which is true) is making more expensive cellphone components locally in Pakistan instead of importing them (where possible), starting with expensive imported components like screens. But govt. has to help manufacturers with those screen factory investments (tariff support again)- because they are very capital intensive investments.

To be truly price-competitive in local market, as well as exports, Pakistani cellphone assemblers cannot be dependent for critical inputs like screen on import sources. The price may go up or the vendor may place odd conditions on sourcing if they sense that those conditions will make them some money...one Pakistani OEM screen-maker can serve a good portion of the local cellphone assemblers' needs. This is the case in Bangladesh.

But yes - all in good time. First step of placing higher tariff on CBU phones is excellent move.
Actually even smartphones are being assembled in Pakistan
My last phone which had a G90T chipset in it had Assembled in Pakistan plastered over it box

Right now we are mostly assembling stuff but in few years we could end up making more parts here

 

Kaleem.61

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Q-Mobile was doing great but their hera pheri sinked them. Govt. may have played some role but it hurt Pakistan Mobile industry!

Last mobile I can remind from Q-mobile was Z12. It was very impressive at the cost of 15k with pretty cool design!!!

1639028913573.png
 

Bilal9

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Actually even smartphones are being assembled in Pakistan
My last phone which had a G90T chipset in it had Assembled in Pakistan plastered over it box

Right now we are mostly assembling stuff but in few years we could end up making more parts here


Well yes, I did not mean that Smartphones are not being assembled in Pakistan, of course they are.

Eventually featurephones will become obsolete as smartphones get cheaper and cheaper. However to make smartphones cheaper, one needs to lower the cost of screens and other high-priced parts, and this is possible only by making them locally.

And lets not discount producing accessories like batteries and chargers,

Here is an example from Bangladesh, I'm sure cellphone batteries are also made locally in Pakistan. But automating the production like this can lower costs.


Also - assembling your own SMD-populated circuit boards for cellphones can also lower costs drastically. This was from 2019.


Walton also makes their own screens and supplies their OEM screen products to other cellphone mfrs. in Bangladesh.

And Thanks for posting the video. Transsion also assembles locally in Bangladesh.
 
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Patriot forever

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Pakistan Has Saved Over $410 Million in Forex Thanks to “Made in Pakistan” Smartphones


Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood has said that the government is determined to make Pakistan a hub of mobile phone manufacturing and export.


The advisor made these remarks while presiding over a meeting to examine the progress made towards the export of locally-manufactured mobile phones from Pakistan under the Make-in-Pakistan policy.

The import of manufactured or completely built units (CBU) is on the decline while that of mobile phone components (CKD) is on the rise. During July-November 2021, the import of CBUs decreased by 73 percent to $179 million as compared to $661 million during the same period last year. This saved $410 million in foreign exchange. In contrast, the import of mobile phone components for local assembly increased by 407 percent to $674 million from $133 million last year.

“Our vision is to make Pakistan a hub of mobile phone manufacturing and export. The export of mobile phones will soon start which will earn foreign exchange for the country,” the advisor said.

ALSO READ
Pakistan to Sign $2.5 Billion Gas Project With Russia
The advisor said that all over the world, smartphones have now become a necessity as many small- to medium-sized enterprises (SME) now run their businesses on mobile phones.

He said that at the start of this government, Pakistan was a net importer of mobile phones but the situation has now been reversed and jobs are also being created in this sector.

Earlier, the advisor was informed that in Pakistan, about 80 to 85 percent of the market is for phones priced at $200 or below. He was informed that as a result of the mobile phone manufacturing policy, which contains duty incentives for enhancing mobile phone assembling in Pakistan, the majority of phones cheaper than $200, are now assembled in Pakistan. It was told that this was complemented by the Pakistan Telecommunication Authority (PTA)’s Device Identification and Registration System (DIRBS) which has curbed the smuggling of mobile phones.

The meeting was further informed that in terms of market share, the Chinese manufacturers control about half of the market as they were quick to utilize the incentives offered by the government and hence have the “first-mover’s advantage” in the market. These assemblers are importing mobiles in semi knocked-down (SKD) condition which are then assembled in Pakistan. This is not only saving foreign exchange but also boosting industrial activity and creating employment. He was further informed that Samsung has also recently started assembling mobile phones in Pakistan.

ALSO READ
Govt Planning a Huge Tax Increase on Imported CBU Cars
The advisor was informed that the success of the mobile phone manufacturing policy was also evident from the import figures during the first five months of the current fiscal year as compared to the same period in the previous year.

What happened in India in 2013 we started 5 years late. Overvalued currency on top of little taxation at import stage was the reason. It was cheaper to import finished product than to assemble one locally. This is why none of the local industry developed.

This is India cell phone industry localisation in terms of their overall market from 2014- 2018. We wasted this period be it IT sector, auto, household appliances/electronics and during this time period India developed its local industries the most.


1639031116752.png

Q-Mobile was doing great but their hera pheri sinked them. Govt. may have played some role but it hurt Pakistan Mobile industry!

Last mobile I can remind from Q-mobile was Z12. It was very impressive at the cost of 15k with pretty cool design!!!

View attachment 799857

They just can not compete with the Chinese brands like infinix, xiaomi, oppo, vivo etc. They killed every small player even HTC Sony Blackburry LG. Even Samsung had to change its model and enter value for dollar model to survive against them in this segment.
 

RealNapster

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Well yes, I did not mean that Smartphones are not being assembled in Pakistan, of course they are.

Eventually featurephones will become obsolete as smartphones get cheaper and cheaper. However to make smartphones cheaper, one needs to lower the cost of screens and other high-priced parts, and this is possible only by making them locally.

And lets not discount producing accessories like batteries and chargers,

Here is an example from Bangladesh, I'm sure cellphone batteries are also made locally in Pakistan. But automating the production like this can lower costs.


Also - assembling your own SMD-populated circuit boards for cellphones can also lower costs drastically. This was from 2019.


Walton also makes their own screens and supplies their OEM screen products to other cellphone mfrs. in Bangladesh.

And Thanks for posting the video. Transsion also assembles locally in Bangladesh.

Screens and Cameras are two things that are difficult to make for Pakistan as it is for majority of brands (majority brands still outsource cameras and screens from other manufacturers). Though we can surely work on the mobile body manufacturing, it's boards, and other accessories like Bluetooth, chargers etc. I mean Local manufacturing of everything except camera and screen should be top priority. We can later work on cameras and screens.
 

Bilal9

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What happened in India in 2013 we started 5 years late. Overvalued currency on top of little taxation at import stage was the reason. It was cheaper to import finished product than to assemble one locally. This is why none of the local industry developed.

This is India cell phone industry localisation in terms of their overall market from 2014- 2018. We wasted this period be it IT sector, auto, household appliances/electronics and during this time period India developed its local industries the most.


View attachment 799861


They just can not compete with the Chinese brands like infinix, xiaomi, oppo, vivo etc. They killed every small player even HTC Sony Blackburry LG. Even Samsung had to change its model and enter value for dollar model to survive against them in this segment.

Indian cellphones are still largely assembled from Chinese parts, this is also true for Indian brands themselves. India does not make parts locally, too expensive. However Indian brands do not come in as even within the top ten brands in India, those are mostly Chinese.

Here Are the Top 10 Mobile Phone Brands in India as of 2021 (the ones in bold are Chinese brands):

#1. Samsung
#2. Apple
#3. One Plus
#4. Xiaomi
#5. Vivo
#6. Huawei/Honor
#7. Oppo
#8. Asus
#9. Nokia
#10. Lenovo
 

Patriot forever

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Indian cellphones are still largely assembled from Chinese parts, this is also true for Indian brands themselves. India does not make parts locally, too expensive. However Indian brands do not come in as even within the top ten brands in India, those are mostly Chinese.

Here Are the Top 10 Mobile Phone Brands in India as of 2021 (the ones in bold are Chinese brands):

#1. Samsung
#2. Apple
#3. One Plus
#4. Xiaomi
#5. Vivo
#6. Huawei/Honor
#7. Oppo
#8. Asus
#9. Nokia
#10. Lenovo

Yes what my point was local assembly, and the steps any country has to take to develop their industry base. . All of the brands you listed have localization in India and rarely import finished products. All of this happened in the last 10 years which we lost.



The reason I mentioned India is in the 90's and early 21st century India was not very much different from Pakistan, India went ahead of Pakistan in the last decade. Same as Bangladesh especially in textiles even though Bangladesh has very little cotton production ( correct me if I am wrong) but just because of flawed policies even our textile sector suffered and value addition was insignificant ( moved to the bottom with cotton cloth or yarn as the bulk of exports).

Importing less and less finished products. For example they are well behind China and are ahead of us. ( Even China started with local assembly than moved onto indigenization of local parts and are have now their industry has developed enough sophistication to start rivaling other countries in niche manufacturing and technologies).

Same goes for their other sectors in India e.g. auto sector ( they started with local assembly than moved onto local manufacturing of auto parts and now auto parts are a big chunk of their overall exports).
 
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