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Smartphone Assembly Units May Shut Down in Pakistan: Report

Areesh

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Local smartphone assembly has been on the rise in Pakistan over the past years. Several major companies including Samsung and Xiaomi have set up their mobile phone assembly units here with hopes to lower local prices for handsets.

Unfortunately, local phone assembly may be coming to an end soon as several plants are on the verge of a halt, according to a report by Express Tribune. This is because letters of credit (LCs) for import are not being opened due to a shortage of dollars since May 20. For that reason, there is a significant deficit of raw materials needed for assembly.

The State Bank of Pakistan (SBP) has made a statement saying that it has not stopped import payments and that commercial banks have enough dollar liquidity to make necessary payments. The inter-bank market has made import payments worth $4.7 billion during the current month so far.

Naturally, this is becoming a cause for concern for multiple OEMs and their business units. Tecno Pack Electronics CEO Aamir Allawala has said that:

"
Now, the industry has used all its raw materials and 80% of the industry is closed, unfortunately. Jobs of almost 50,000 people working in the industry are at risk.
"

Eventually, this will halt the supply of locally manufactured low-cost mobile phones, and only those who can afford imported phones will be able to buy them. ICT expert Parvez Iftikhar said that “We will have to say goodbye to our dream of becoming an exporter of mobile phones”.

Automobile manufacturing companies like Proton, Toyota, and KIA have also announced layoffs.


 

Areesh

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But I don't think we should be worried with these developments since:

1. Constitution is safe
2. Vote ko izzat do has been successfully achieved

Mulk to aata jata rehta hai. Zardari aur sharif khandan khush rehnai chahiye
 

Wesen Hunter

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Unlikely.
For feature phone manufacturing, Pakistan is a cost effective destination so LCs will resume once IMF deal reached.
 

Wood

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Rollback of PTI's fuel subsidies was a step in the right direction for Pakistan's fiscal well being. But it came later than it should have. :undecided:
 

Dual Wielder

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Those shitty smartphones with bloated softwares full of ads? No thanks!!

The incentives for manufacturing phones in Pakistan was to reduce the costly import bill the federal government was left responsible for caused by the huge trade deficit. The program was successful where 10's of millions of Pakistanis were buying locally assembled phones. But I don't see why You care?, You have Your 'Iphone 12' which you were screaming about on the other thread, and oh You wouldn't be paying those 'whooping taxes' (for overseas Pakistanis) if it was a personal phone. You more likely wanted to pawn it off for a profit, lets not forget an IPhone is beyond the means of the average Pakistan in fact it is quite close to or more than the per a capita for the average Pakistani. It is a LUXURY good, not a necessity. I'm content with my 4 years old Sony Xperia XA phone, which has all the apps I need, and I expect at least few more years use out of it. Let's not crap on any effort of someone who tried to industrialize the country, over 24 million phones were produced last year alone, its a pity it has perhaps now come to an end, thanks to Bajwa's treacherous doctrine. *
 
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