Local smartphone assembly has increased in Pakistan in recent years.
Unfortunately, local phone assembly may come to an end soon, as several plants are on the verge of closing, according to a report.
This is because letters of credit (LCs) for imports have not been opened since May 20 due to a dollar shortage. As a result, there is a significant shortage of raw materials required for assembly.
The State Bank of Pakistan (SBP) has issued a statement stating that import payments have not been halted and that commercial banks have sufficient dollar cash flow to make necessary payments.
So far this month, the interbank market has made import payments totaling $4.7 billion.
Naturally, this is causing concern among several OEMs and their business units. Aamir Allawala, CEO of Techno Pack Electronics, stated:
“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”.
Unfortunately, the industry has depleted its raw materials and is now 80 percent closed. Almost 50,000 people working in the industry are at risk of losing their jobs.
This will eventually halt the supply of locally manufactured low-cost mobile phones, leaving only those who can afford imported phones to purchase them. ICT expert Parvez Iftikhar said that “We will have to say goodbye to our dream of becoming an exporter of mobile phones”.
To read our blog on “In just 11 months, Pakistan’s mobile imports reached about $2 billion,” click here