In Pakistan, the number of smartphone assembly plants has gone up over the past few years. Several big companies, like Samsung and Xiaomi, are putting together mobile phones in this area to lower the prices of phones in this area.
A report from a news source says that a number of plants in Pakistan are about to shut down, which could mean that smartphone assembly could end in the area soon. Since May 20, there have not been enough dollars to open import letters of credit (LCs). As a result, there are just not enough raw materials to build.
State Bank of Pakistan (SBP) said it hasn’t suspended import payments and that commercial banks have adequate money to complete payments. Since January 1, the interbank market has processed $4.7 billion in payments for imported products.
Several original equipment manufacturers and the business units that make up those OEMs are starting to worry about this. Aamir Allawala, the CEO of Tecno Pack Electronics, has said the following:
Unfortunately, the industry has used up all of its raw materials at this point. This is why 80 percent of it has shut down. There is a chance that about 50,000 people who work in the business could lose their jobs.
Because of this, eventually, the supply of low-cost mobile phones made in the country will run out. Only people with enough money to do so will be able to buy imported phones. Parvez Iftikhar, an expert in information and communication technology, says, “We will have to give up on our goal of exporting mobile phones”.
Companies that make cars, like Proton, Toyota, and KIA, have also said they will be laying off workers.