[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Due to several manufacturers ceasing operations in Pakistan, the country’s mobile phone industry is currently experiencing a severe setback. One of the primary factors in the companies’ decision is the non-opening of Letters of Credit (LCs).
It has been challenging for Pakistani manufacturers of smartphones due to a lack of raw materials. The China-Pakistan Economic Corridor’s (CPEC) mobile phone manufacturer, Transsion Techno Electronics, has also ceased operations in Pakistan.
Early in 2019, a Chinese and a Pakistani corporation formed a joint venture to launch Transsion Techno Electronics. It employed 2500 male and female workers, 400 Pakistani engineers, 12 Chinese supervisors, and it produced about 0.3 million smartphones each month.
Nevertheless, the company was forced to close down due to a lack of raw materials and parts. Azfar Ahsan, the former chairman of the Board of Investment (BoI), has written a letter to Prime Minister Shebaz Sharif pleading with him to act right away.
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He said that the same issues are being faced by 30 other mobile phone manufacturers, including Samsung, Xiaomi, Vivo, OPPO, Nokia, Tecno, Infinix, and Itel. He said that the economy and employment were at risk due to the paucity of raw resources and the frozen LCs since January 2023.
Azfar continued by saying that the situation is getting worse as a result of the large layoffs, and that the industry needs $100 million per month to maintain operations at even 50% capacity and to maintain the 35,000–40,000 direct and indirect jobs.[/vc_column_text][/vc_column][/vc_row]
