Amid import restrictions, the company faced a huge shortage of raw materials and components for mobile phones
CPEC (China-Pakistan Economic Corridor) initiated Transsion Tecno Electronics, Pakistan’s mobile phone venture, has finally bowed to the pressure of import restrictions and announced its shutdown.
After going through a long period without importing raw materials and components for mobile phones, the company finally gave up and announced that it could no longer continue to manufacture mobile phones without the availability of materials.
Transsion Tecno Electronics is a joint venture between Pakistan and China operating under CPEC. Tecno Electronics mobile phone manufacturing plant started in 2017 and has been manufacturing mobile phones since then.
“The company produced 300,000 smartphones per month. They also offered jobs to 12 Chinese managers, 400 Pakistani engineers and 2,500 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 challenges,” said former Tecno Board of Investment (BoI) Chairman Electronics Azfar. Ahsan in his letter to Prime Minister Shahbaz Sharif.
The BoI, in its letter to Prime Minister Shahbaz Sharif, also noted that the government’s inability to open letters of credit from January 2023 puts the economy at risk.
“Mass layoffs create an additional negative impact. The industry needs $100 million per month to stay afloat at even 50% capacity and maintain the 35,000-40,000 direct and indirect jobs created by the same,” he said in the letter.
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