Country set to become net phone exporter

Exports picking up gradually, supported by increase in assembly plants

KARACHI:

Pakistan’s telecom sector is witnessing a paradigm shift and as a result the country is on its way to become a net exporter of handsets from being an importer at present.

Foreign shipments of mobile phones, which began last year, are contributing to the economy in terms of foreign exchange earnings, employment generation and transfer of technology.

The pace of cellphone exports has gradually picked up, supported by expansion and increase in assembly plants in the country.

“In the second half of 2022, we will feature among established mobile phone exporters in the world,” remarked Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood in an interview with The Express Tribune.

Following the establishment of assembly plants for cellular phones in Pakistan, the import of completely built units (CBUs) of digital devices has dropped to 10.3 million, he said.

According to statistics provided by the Pakistan Telecommunication Authority (PTA), Pakistan imported 28.02 million handsets in 2019 alone. Now, the country produces around 25 million phones due to the growing local assembly facilities including many globally renowned brands.

To recall, Pakistan approved the Mobile Device Manufacturing Policy in April 2019 and produced 11 million phones in the same year. The policy was given the green light after a year-long consultative process with the interested industrialists.

“Today, the number of locally manufactured mobile phones has more than doubled compared to the 2019 value,” Dawood said. “Nearly 30 companies have registered for mobile phone manufacturing and assembly in Pakistan and a few renowned names are among them.”

Of these, some would be forced out by the competitors but the rest would emerge as strong players, which would benefit the country, said the adviser.

Those firms would not only give a boost to import substitution for mobile devices but would also pour hefty investment into the industry and generate employment opportunities for the locals, he said.

A Chinese smartphone manufacturer has made handsome profit in Pakistan’s market since its entry two years ago. It established an assembly line with an investment of $16 million last year.

So far, the facility has created around 800-1,000 jobs, which include technicians, engineers and other employees.

After the brand began assembling phones in Pakistan, the price of its phones dropped 40% and the benefit reached the end-consumers.

The number of smartphones has been on the rise in the country as 4G users cross the 100 million mark.

A large number of youth are rapidly adopting the available cellular technology by purchasing cutting-edge mobile phones mainly in urban areas.

Moreover, the government has planned to launch 5G technology next year, hence further investment in the sector is on the cards.

Mobile phone manufacturers are planning to pour investment into research and development activity in order to capture the growing local market through innovation and technological advancement in their operations and products.

Realme Country Head of Sales and Country Head for Pakistan Harvey He stated that his firm built an assembly plant in Lahore.

“Pakistan is extremely important for us as it is one of the top four markets in the South Asian region,” he said. “We aim to rank among the top three smartphone brands in the country.”

Pakistan’s mobile industry is growing and developing at a robust pace as sales touched record levels every quarter during the pandemic.

“The environment is quite conducive for smartphone manufacturing in Pakistan and it enables companies to offer a wide range of products,” he said. “Local assembly lines are becoming operational as well.”

Published in The Express Tribune, February 22^nd, 2022.

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