Tecno Electronics Stopped Its Mobile Phone Production in Pakistan

Due to a difficult economic crisis, many mobile phone manufacturers, including Tecno Electronics, have stopped mobile phone production in Pakistan. Because there were not enough raw materials available, a shortage of currency, and difficulties in getting financial documents. People who liked Tecno Mobiles were surprised to hear that the company would no longer make smartphones and electronics in Pakistan. They had trusted Tecno’s factories to make good products at reasonable prices. This situation is unfortunate and has caused other mobile phone makers in the country to close as well. It shows the big challenges faced by the industry in Pakistan.

Tecno Electronics | A Key Player in the Pakistani Economy & the Need for Industry Support

Transsion Tecno Electronics, a collaboration between China and Pakistan, has played a significant role in the Pakistani economy since its establishment. Muhammad Azfar Ahsan, the former Minister of State and Chairman of the Investment Board of Pakistan, highlighted this matter in a letter to Prime Minister Muhammad Shahbaz Sharif, expressing his concern about the situation faced by the mobile phone industry in Pakistan.

The mobile phone industry is going through a tough phase, and its impact on the economy cannot be ignored. Muhammad Azfar Ahsan highlighted the importance of addressing these issues and finding solutions to support the industry. The letter aimed to draw the attention of the government to the significant contributions made by Tecno Electronics. Also, describe the need to take measures to overcome the challenges.

Tecno Mobiles began its operations in Pakistan in 2019 as part of the CPEC Phase II B2B cooperation program. There were 12 Chinese managers and 400 Pakistani engineers employed by the company, and 2500 individual workers. While the company had a monthly production capacity of 300,000 smartphones.

Unfortunately, Tecno is not the only company facing challenges in Pakistan. Other well-known global brands such as Samsung, Realme, Vivo, Oppo, Nokia, and Infinix are also experiencing similar problems at present. The mobile phone industry faces many issues, including shortages of raw materials and difficulties in obtaining necessary financial support.

These challenges have impacted the production of mobile phone manufacturers in Pakistan, leading to the worst situation for the industry. The government and stakeholders must handle these issues of the industry and continue its contribution to the economy.

Preserving Jobs & Economic Stability

The closure of manufacturing industry has a severe impact on the country, leading to job losses and detrimental effects on the economy. According to the former Minister, the industry requires USD 100 million per month to operate at 50% capacity compared to previous years. By securing this funding, it would be possible to keep 35,000 to 40,000 jobs, safeguarding employment for thousands of individuals. The importance of preserving these jobs cannot be understated, as they contribute to the overall stability and growth of the economy. Steps need to be taken to manage the funding requirements of the mobile phone manufacturing industry in Pakistan.

Conclusion

The closure of Tecno Electronics is notable for the mobile phone industry in Pakistan. It plays a crucial role in our economy, and it is important that we address the challenges to ensure its survival. If we don’t act on time, our dreams for a successful “Made in Pakistan” initiative may be lost. It is essential to show the world that Pakistan remains a good destination with great opportunities. We must also maintain the trust of both foreign and local investors through quick actions. The government has the power to achieve significant outcomes by taking immediate measures in this regard.

The government of Pakistan should take the following steps to discuss the challenges facing the mobile phone industry:

1. Provide access to foreign currency to allow businesses to import raw materials and other goods.
2. Reduce import restrictions to make it easier for businesses to import mobile phones and other electronic devices.
3. Work to attract foreign investment in the mobile phone industry.

By taking these steps, the government can help to ensure that the mobile phone industry including Tecno Electronics can contribute to the Pakistani economy.