In a major development, Tecno has decided to shut down its production in Pakistan amid its economic crisis. The news came this morning and shocked the fans who rely on Tecno’s Pakistani production units to develop and produce quality smartphones and electronics at an affordable price.
The operations of numerous mobile industries have ceased due to a scarcity of raw materials, a shortage of dollars, and an inability to open letters of credit over the last few months. This predicament has compelled mobile phone manufacturers, including Transsion Techno Electronics, to terminate their operations in the country.
Red Flag for Pakistani Mobile Industry
Since its establishment, Transsion Techno Electronics, a joint venture between China and Pakistan, has been a significant contributor to Pakistan’s economy. Muhammad Azfar Ahsan, former Minister of State and Chairman of the Investment Board expressed his apprehensions about the challenging circumstances that the mobile phone industry in Pakistan is facing in a letter addressed to Prime Minister Muhammad Shahbaz Sharif.
Under the CPEC Phase II B2B cooperation, Transsion Techno commenced its operations in 2019 as part of the Pakistan-China friendship initiative. The company manufactured 300,000 smartphones each month and generated job opportunities for 12 Chinese managers, 400 Pakistani engineers, and 2,500 male and female workers.
Transsion Techno Electronics is not alone in experiencing this fate in Pakistan; other renowned global brands, including Samsung, Xiaomi, Vivo, Oppo, Nokia, Tecno, Infinix, and Itel, are also grappling with this challenging situation.
The shutdown of these manufacturing facilities has not only resulted in layoffs but has also had an adverse impact on the economy. According to former Minister Muhammad Azfar Ahsan, the mobile phone manufacturing industry requires USD 100 million each month to operate at 50% capacity, as opposed to before.
This measure would allow the industry to sustain 35,000-40,000 direct and indirect jobs. Ahsan emphasized the need for a prompt intervention to provide foreign exchange and revive the operations of the industry, thereby alleviating the plight of the labor force.
Undoubtedly, the mobile manufacturing industry is the backbone of the economy, and if this problem is not addressed in a timely manner, the situation could spiral out of control, jeopardizing our ‘Made in Pakistan’ initiative.
Therefore, swift action is required to demonstrate to the world that Pakistan remains a fertile ground for investment opportunities and to maintain the trust of both local and foreign investors. The government must take immediate steps to achieve these objectives.