Xiaomi to start local assembly of mobile phones in Pakistan next month

In an incredibly positive development for the Pakistani ecosystem, Chinese tech titan and the world’s largest smartphone manufacturer Xiaomi is all set to collaborate with local partners to assemble mobile phones in Pakistan starting next month. 

In an interview with Gwadar Pro, Xiaomi National Representative Peter Chai revealed that the company plans to begin local assembly of mobile phones in Pakistan in December 2021.

Ever since the new Mobile Device Manufacturing (MDM) Policy has been approved, a plethora of companies have started taking interest in acquiring assembling licenses. These licenses will promote localization of mobile phone manufacturing and assembly, which in turn will boost employment opportunities for locals. 

Sales Director Shahrukh Rohilla went on to highlight that the MDM Policy will decrease taxation for manufacturers if smartphone brands assemble locally in Pakistan. 

“In June 2021, there was a significant increase in regulatory duties through which CBU import pricing has gone much higher,” he explained. “In this way, it has become almost mandatory for global brands to start assembling locally to compete while at the same time providing honest pricing to our end consumers.” 

Xiaomi entered Pakistan in 2017 through its official distributor Smartlink, where it initially focused on online selling. The company is now operating in Pakistan through 4 official distributors: Smartlink, M&P/TechSirat, Airlink & Phonezo.  

Moreover, Mistore.pk is Xiaomi’s major e-commerce portal managed through its partner Smartlink and it is also strategically aligned with Daraz. 

Talking about the potential of the Pakistani mobile market, Mr. Chai explained that it is regarded as the most important market in the region. 

“Currently, its market size is approximately 18-20 million units smartphone annually worth approx. US$ 2.3-2.5 billion,” he noted. “We expect this market to grow with an estimated 15-20% on YoY basis, keeping in view local manufacturing and growth of the smartphone segment.”