Mobile phone industry requires immediate attention: Former Minister

March 03, 2023 (MLN): The shortage of raw materials and the inability to open letters of credit since January 2023 has forced several mobile phone manufacturers to shut down operations, including Transsion Tecno Electronics, a joint venture between China and Pakistan, Former Minister of State and Chairman Investment Board Muhammad Azfar Ahsan highlighted in an urgent letter written  to the Prime Minister of Pakistan, Muhammad Shahbaz Sharif, regarding the dire situation faced by the mobile phone industry in the country

The production facility, which started operations in early 2019 as an initiative under CPEC Phase II B2B cooperation, produced 300,000 smartphones per month and provided employment to 12 Chinese managers, 400 Pakistani engineers, and 2500 male and female employees.

In addition to Transsion Tecno Electronics, 30 other mobile phone manufacturers, including global brands such as Samsung, Xiaomi, Vivo, OPPO, Nokia, Tecno, Infinix, and Itel, are also facing similar issues.

The closure of these manufacturing facilities has resulted in massive layoffs, putting the economy and jobs at risk. The industry needs USD 100 million per month to stay afloat at even 50% capacity and to retain the 35,000-40,000 direct and indirect jobs created by the same, he noted. 

The former Minister also urged the Prime Minister to intervene immediately and provide foreign exchange to revive the operations of this labor-intensive industry.

He highlighted that it is critical for Pakistan to maintain the trust of foreign and local investors in these trying times of economic uncertainty to spur growth and generate employment opportunities.

The industry is the backbone of the economy, and if left unaddressed, the situation may become irreparable.

It is crucial to prove to the world that Pakistan is still the land of opportunities with limitless potential.

He was of the view that a prosperous Pakistan, as envisioned by Quaid, can only be achieved with the Prime Minister's support and immediate action. 

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