Mobile industry facing serious shortage of raw materials, components.
ISLAMABAD -- The mobile industry in Pakistan is facing serious issues of shortage of raw materials and components, and its inability to open letters of credit(LCs) is threatening a complete shutdown of the industry including the CPEC-based assembling unit, Transsion Tecno Electronics.
In a open letter to Prime Minister of Pakistan, former State Minister and Chairman Board of Investment (BoI), Muhammad Azfar Ahsan has sought the government's intervention to revive the mobile manufacturing industry on a war footing.
The letter said that the mobile industry is threatened with a complete shutdown including the CPEC-based assembling unit, Transsion Tecno Electronics.
According to a letter sent to Prime Minister of Pakistan Mian Muhammad Shehbaz Sharif by Muhammad Azfar Ahsan, it was highlighted that Transsion Tecno Electronics and 30 other mobile phone manufacturers, including global brands Samsung, Xiaomi, Vivo, OPPO, Nokia, Tecno, Infinix, and Itel, are facing issues of shortage of raw materials and components, and an inability to open letters of credit since January 2023. This has adversely impacted the feasibility with a halt to business activities and massive rise in unemployment.
This production facility of Transsion Tecno was a joint venture between China and Pakistan. It started production in early 2019 as an initiative under CPEC Phase II B2B cooperation. The company produced 300,000 smartphones per month. They also offered employment to 12 Chinese managers, 400 Pakistani engineers, and 2500 male and female employees, the letter reads.
The industry...
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