The mobile companies in Pakistan have been interested in manufacturing the mobile phones locally, after the smuggling from abroad into Pakistan has ended. Pakistan Telecommunication Authority (PTA) had issued license to 24 mobile companies for the production of mobile indigenously.
A Pakistani company “Tecno Mobile” and a Chinese company “Transsion Holdings” has setup up a business partnership and a joint venture with the company named as “Transsion Tecno Electronic Limited (TTE)”
Transsion Holdings is becoming the greatest popular smart device and mobile internet service provider for patrons in global emerging markets. The firm is well known for its good quality multi-brand devices with cell phones as the central products, and mobile internet service based on self-developed intelligent terminal OS (operating system) and enormous mobile phone customers.
TTE will be responsible for the production of 3G and 4G mobile phones in Pakistan. In this partnership Pakistani company Tecno mobile will own a share of 60% and Chinese company will have 40% share and stake in the company (TTE).
CEO of Transsion Tecno Electronic Limited Asif Allah Wala said that this company will be the first and foremost in Pakistan to manufacture 3G and 4G mobile phones. He further said to produce 18 lac mobile phones yearly the company has hired 800 adept and skilled labor force. This workforce comprises young people aged less than 30 years old who are engaged in manufacturing of mobile phones.
He further added, companies were enhearted and embolden to produce cell phones locally after the excessive smuggling of mobiles in the country has been put to an end. Twenty-four companies acquired the license to manufacture mobile phones in Pakistan.
The annual capacity of the mobile phones economy of Pakistan is nearly 366 billion rupees, while the annual gross revenue of the auto sector industry is 360 billion rupees. Mobile phone set industry is bigger than the auto sector.
For the mobile phone industry to flourish, the government should formulate a policy to bolster them locally. GSMA Intelligence report “Definitive Data and Analysis for the Mobile Industry—Mobile Economic Impact Pakistan” published in April 2019, states that in 2018 mobile ecosystem will generate nearly 5.4 % of GDP which is almost 17 billion dollars in value added. For the year 2023 it has been forecasted that this industry will boost up to 24 billion dollars.
Wherever the industry is, employment is the heart of it, and in a country like Pakistan employment is much needed everywhere. Mobile ecosystem has generated 320,000 direct jobs in 2018 while 130,000 people have been employed indirectly according to GSMA Intelligence report “Definitive Data and Analysis for the Mobile Industry—Mobile Economic Impact Pakistan”.
The CEO Asif Allah Wala added the mobile phone industry is one of the top 5 industries worldwide, whose heart and center is china. China exports 150 billion dollars’ worth of cell phones per annum. Chinese labor force charges $600 per month, whereas Pakistani workers or labor work only on $120 per month.
Due to this fact Pakistan may and can become an attractive business destination for the international mobile manufacturing companies in the future. As China is today, it is beholding to reposition its mobile phone manufacturing industry to another country. Pakistan could purposefully and strategically present itself as a potential location/site. Previous year, Chinese exports of mobile phones were worth $141 billion. If Pakistan is able to tap in on just 25% of this value, smartphones industry here has the potential to become one of Pakistan’s main export product, outstripping textiles.
Whole lot of this can be read also at Urdu Syasat as primary source.
