In a significant development, Tecno Mobiles has decided to end its production in Pakistan amid the economic crisis. The news came this morning and shocked fans who rely on Tecno’s Pakistani manufacturing units to develop and manufacture quality smartphones and electronics at an affordable prices. Many mobile industries have reached a standstill due to a lack of raw materials and dollars and the inability to non-opening of Letters of Credit (LCs) over the past few months. This predicament has forced mobile phone manufacturers, including Transsion Techno Electronics, to shut down their operations in the country.
Pakistan’s mobile phone industry faces a major setback as several manufacturers have shut down their operations there. The lack of raw materials has made it difficult to manufacture smartphones in Pakistan. Transsion Tecno Mobiles Electronics, a Chinese company that manufactures mobile phones under the China-Pakistan Economic Corridor (CPEC), has also stopped production in Pakistan. Non-opening letters of credit (LC) is one of the main reasons for companies’ decisions.
Insufficient raw materials:
Tecno Electronics started its operations in early 2019 as a joint venture between a Chinese and a Pakistani company. It produced around 0.3 million monthly smartphones and employed 12 Chinese managers, 400 Pakistani engineers, and 2,500 male and female employees. However, the company was forced to close down due to insufficient raw materials and parts. Former Board of Investment (BoI) chairman Azfar Ahsan has written a letter to Prime Minister Shebaz Sharif urging him to take immediate action. It said 30 other mobile phones makers, like Samsung, Xiaomi, Vivo, OPPO, Nokia, Tecno, Infinix, and Itel, face the same problems. He noted that raw material shortages and frozen LCs from January 2023 threatened employment and the economy. However, Azfar added that massive layoffs are worsening the situation, while the industry needs $100 million a month to remain operating at 50% capacity and maintain 35,000-40,000 direct and indirect jobs.
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