Cellular Companies Are Planning To Shut Down Assembly In Pak
A mobile phone assembly plant in Pakistan will be shut down by a multinational Pakistani company.
The first steps have been taken after closely monitoring Pakistan’s economic situation. We needed more money, so we made the choice. According to reports, three major phone manufacturers have reportedly ceased assembly operations.
The news deeply concerned His Sardar Azhar Sultan, president of Lahore Traders Rights. “The shortage of dollars makes it difficult for mobile operators to send funds to their overseas headquarters,” states Sardar Azhar Sultan. Importing mobile phone accessories also presents challenges for the business sector. The goods have not arrived, and the letter of credit (LC) has not been opened, so what will happen to the business? the mobile phone company, but the name of the company that decided to close the assembly department is still unknown. It is unclear which companies will stop producing locally in Pakistan.
Additionally, Xiaomi, Samsung, Infinix, Vivo, and others are significant phone manufacturers and assemblers in this nation. In addition, no official announcement has been made regarding which of these brands has ceased production.
Impact on Pakistan However, the fact that major corporations intend to cease operations is difficult to comprehend. This is bad news for our Pakistani customers.
However, up until a few years ago, the local production of smartphones was primarily responsible for the low prices of some models.
In the meantime, import prices are rising at an unprecedented rate and assembly plant closures are recent. Smartphone prices are so high as a result.
For instance, the Redmi Note 10 Pro was available in Pakistan for between Rs 45,000 and Rs 50,000. However, the Redmi Note 11 Pro, which is its replacement, currently costs more than Rs 80,000.
The same is true for high-end models from Samsung, Vivo, Apple, and other refurbished manufacturers. However, the majority of the main products were not initially manufactured locally.
Local production, not exorbitant import taxes, is to blame for this.
In the past, Pakistan’s economy benefited from higher levels of local mobile phone manufacturing. The Pakistani government has benefited from the move. In 2021, local manufacturing facilities produced 24.66 million of their mobile devices. Compared to his 13.05 million in 2020, this represents an 88% increase.
However, the total number of locally manufactured and assembled smartphones reached 24.66 million in December 2021, an increase of 2.54 million. More than 25 of his businesses have been granted licenses by Mobile Device Manufacturing (MDM) to continue operating in Pakistan.