Amidst import curbs, the company is facing massive a shortage of raw materials and mobile phone components
Initiated under the CPEC (China Pakistan Economic Corridor) project, Pakistan’s mobile phone production facility, Transsion Tecno Electronics has finally given in to the pressure of import restraints and announced a shutdown.
After surviving a large period without the import of raw materials and mobile phone components, the company finally gave in and announced that they can no longer continue mobile phone manufacturing without the availability of materials.
The Transsion Tecno Electronics is a CPEC powered joint venture between Pakistan and China. The Tecno Electronics mobile phone manufacturing plant started off in 2017 and has been producing mobile phones since then.
“The company produced 300,000 smartphones per month. They also offered employment to 12 Chinese managers, 400 Pakistani engineers, and 2500 male and female employees,” the letter said. In addition to Transsion Tecno Electronics, 30 other mobile phone manufacturers, including global brands Samsung, Xiaomi, Vivo, OPPO, Nokia, Tecno, Infinix and Itel, are facing similar issues,” said Tecno Electronics Former Board of Investment (BoI) chairman Azfar Ahsan, in his letter to Prime Minister Shahbaz Sharif.
The BoI in his letter to PM Shahbaz Sharif, also mentioned that the government’s inability to open letters of credit since January 2023 is pushing the economy at a position of risk.
“Massive layoffs are creating a further negative impact. The industry needs USD 100 million per month to stay afloat at even 50% capacity and to retain the 35,000-40,000 direct and indirect jobs created by the same” he said in the letter.
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