ISLAMABAD: As the mobile phone sector has shown tremendous growth since it started manufacturing/assembling smartphones in the country following the mobile policy introduced in 2020, Chinese firms are interested in making joint ventures with Pakistani companies for parts manufacturing and export of phone sets from Pakistan.
These were claimed by local mobile phone manufacturers/assemblers during a mobile device manufacturing summit held here on Tuesday. The event was organized by the Engineering Development Board (EDB) and Pakistan Mobile Phone Manufacturing Association (PMPMA).
While addressing the summit, Vice Chairman of PMPMA Aamir Aallwala said that China has 48 percent share in global mobile phone sets exports. “We could also become a major exporter even if 10 percent of Chinese exports are routed from Pakistan after joint ventures between Chinese and local firms initially for assembly or parts manufacturing of mobile phones,” he said, adding that Chinese firms were interested in doing JVs with Pakistani firms.
“What we need is government’s support, consistency of policy and stability,” he said.
According to him, India, which initiated the manufacturing of mobile phones in 2017, was doubling exports every year. Even the firms in the auto sector were also interested in manufacturing plastic accessories of the smart phones, he claimed.
Earlier addressing the summit Federal Minister for Industry and Production, Makhdoom Murtaza Mahmud said that the mobile phone manufacturing industry would flourish more under the second phase of China Pakistan Economic Corridor (CPEC).
He said that the country was going through a hard time, but it was everyone’s responsibility, including politicians, the private sector and stakeholders to work together, adding that mobile manufacturing was a new industry, therefore, they were facing difficulties.
Mahmud said that by improving the mobile industry, the country’s needs could be fulfilled from domestic production.
He said that the devaluation of the rupee had reduced labor costs and added that the export could be increased by enhancing mobile manufacturing.
He said that Pakistan will come out of these situations in the short term, but “we have to make a long-term policy”.
Meanwhile, Secretary, Ministry of Industry and Production Imdadullah Bosal highlighted that in 2020, a policy was launched to increase the production and half the journey had been completed while half was left.
He said, “We need to upgrade technology, boost productivity to increase the labor market, and the policies that work in Vietnam and Malaysia may not work here.”
Senior GM Policy Engineering Development Board Asim Ayaz said that friendly policies had been introduced for the mobile phone industry.
He said that local production of mobiles in Pakistan was “continuously increasing”, except for one company, all major brands of mobiles were made in Pakistan. Around US$ 2.6 billion had been invested in the local mobile manufacturing industry in the country, Ayaz highlighted.
Vice Chairman Mobile Manufacturing Association Muzzaffar Piracha said that if the government provides an enabling environment for mobile manufacturers, the exports in the industry could “cross the $14 billion mark within three years”.
He said that the industry could bring Pakistan out of deficit as the government is able to meet 95% of Pakistan’s local mobile demand in two years. However, he said the mobile manufacturers want support from the government to enhance the export.
Piracha said that due to government policy, all mobiles were now being manufactured in Pakistan. “We have created 40,000 employment opportunities, and more than 20,000 retailers are associated with this business.”