Transsion Techno to Shut Down its Operations in Pakistan- Another Major setback to Mobile Phone Industry

Due to the shortage of raw material, dollar shortage and inability to open letters of credit from last few months, operations of many mobile industries have come to halt. This situation has forced mobile phone manufacturers to shut down their operations in the country and Transsion Techno Electronics is one of them.

Transsion Techno Electronics is a joint venture between between China and Pakistan and has contributed to Pakistan’s economy since its inception. Former Minister of State and Chairman Investment Board Muhammad Azfar Ahsan brought this issue in light while writing a letter to Prime Minister of Pakistan Muhammad Shahbaz Sharif. He showed his concerns over the difficult situation that is faced by the mobile phone industry in Pakistan.

Mobile phone industry requires immediate attention: Former Minister

Transsion Techno started its operation in 2019 under Pakistan-China friendship initiative as  CPEC Phase II B2B cooperation. The company produced 300,000 smartphones per month and provided employment to 12 Chinese managers, 400 Pakistani engineers, and 2500 male and female employees.

Transsion Techno Electronics is not the only manufacture that has to witness this fate in Pakistan, many other global brands such as Samsung, Xiaomi, Vivo, Oppo, Nokia, Tecno, Infinix and Itel are also facing this difficult situation.

Due to the closure of this manufacturing facilities, the country has not only witnessed layoffs but also has impacted the economy. Former Minister Muhamamd Azfar Ahsan revealed that the  mobile phone manufacturing industry needs USD 100 million per month to keep on working with just 50% capacity unlike before. With this, it will be able to retain  35,000-40,000 direct and indirect jobs.

He also urged that at this point, immediate intervention is needed provide foreign exchange  that will revive the operations of this industry and will relieve the labors.

No doubt, Mobile manufacturing industry is the backbone of economy and if this issue is not addressed on time, the situation will go out of our hand and even our ‘Made in Pakistan’ initiative dream will also shatter. With sudden measures, we need to tell the world that Pakistan is still ripe land of opportunities and also need to maintain the trust of foreign and local investors. All this will be achieved, if the government takes immediate action.

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