Aamir Allawala, the CEO at Tecno Pack Telecom (Pvt) Ltd, has said that since the mobile industry policy rolled out in July 2020 the local cell phone industry has created more than 60,000 jobs. Moreover, the local industry is also expected to cater to 90 percent of the cell phone demand in the country by June 2022.
The local production of cell phones has witnessed a significant rise in last couple of years. Just in the calender year 2021, local manufacturing plants produced 24.66 million mobile devices, up from 13.05 million in calendar year 2020, marking an 88 percent increase in Pakistan.
This hike is seen after PTA introduced the Device Identification Registration and Blocking System (DIRBS) to stop illegal imports. The approval of the Mobile Device Manufacturing Policy which took year-long consultative process helped shaped the future of cell phone industry of Pakistan.
To recall, Pakistan in April 2019 produced 11 million phones after the policy was approved in the same year.
“Today, the number of locally manufactured mobile phones has more than doubled compared to the 2019 value,” Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood said.
“Nearly 30 companies have registered for mobile phone manufacturing and assembly in Pakistan and a few renowned names are among them,” he said.
According to the Engineering Development Board, 30 cell phone companies received permission to manufacture mobile phones in Pakistan. Out of the 30, 19 have already started their operations.
Moreover, CEO Tecno said that the local industry is expected to cater to 90 percent of the cell phone demand in the country by June 2022 which will bring down the prices of the devices.
“Price can be expected to go down because the mobile industry is labor-intensive. For instance, labor cost is $1,000 in China and in Pakistan, it is $150,” he said.
The duty incentives on local production and cheaper labor in the country would see prices of cell phone going down by 10 to 15 percent.
Allawala’s company can produce approximately 10 million cell phones annually. They have been assembling Infinix, Tecno, ITEL, and Nokia phones in Pakistan.