Soaring demand for consumer electronics and low labor costs are attracting major global smartphone manufacturers like Samsung to Pakistan. In 2021, local manufacturers produced 25 million handsets, up a whopping 88% increase from 13 million produced in 2020. A key factor credited for this rapid production ramp-up is the new Mobile Device Manufacturing Policy announced and implemented by former Prime Minister Imran Khan's government in 2020. It imposes high tariffs on the import of mobile phone sets and offers tax rebates for local manufacturing. The policy set a 49% localization target by June 2023, including 10% localization of components on the motherboard and 10% localization of batteries. Pakistan is forecast to be the world's 7th largest consumer market by 2030. The key to attracting more manufacturing in Pakistan lies in continuation of pro-investment policies and a measure of political stability.
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| Pakistan Going From Imports to Exports of Mobile Handsets. Source: PIDE |
The local manufacturing plants have assembled 14.08 million mobile phone handsets in the first six months (January-June) of 2022, while imports declined to 1.14 million handsets, according to the Pakistan Telecommunication Authority (PTA). Implementation of Device Identification Registration and Blocking System (DIRBS) and conducive government policies including the Mobile Device Manufacturing Policy 2020 have created a favorable environment for mobile device manufacturing in Pakistan.
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| Pakistan Mobile Phone Market. Source: PIDE |
In addition to Samsung, a number of Chinese mobile handset manufacturers are investing in Pakistan to ramp up local production. Itel has manufactured 3.91 million mobile devices followed by VGO Tel's 2.97 million, Infinix 2.65 million, Vivo 2.45 million, Techno 1.87 million, QQMEE 0.86 million and Oppo 0.67 million. After the export of the first lot of 4G smartphones to the UAE in 2022, Pakistan has now set $1 billion target for mobile phone exports for the current fiscal year.
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| Pakistan Telecom Indicators. Source: PTA |
Pakistan wants to emulate Vietnam which has emerged as one of the leading countries in the assembly and export of smartphones and other consumer electronics devices in the past decade. Apple has recently moved part of its iPad manufacturing to Vietnam from China, where Covid lockdowns have disrupted supply chains. TRT World has recently quoted Quentin D’Silva, the head of Lucky's smartphone division in Pakistan, as saying, “It’s only in the last five to seven years that the smartphone business has mushroomed in developing countries like ours".
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Not going to happen unless we have consistent, investor friendly policies. Manufacturing needs cheap energy. Pakistan energy rates are highest in region.
ReplyDeleteIf Imran Khan comes back and our military allows him to work, Pakistan can realize its true potential. Otherwise if army wants to keep playing with its corrupt political toys, who have no vision for country execpt to steal more money, Pakistan has no future. Army needs to be kicked out of country's political decisions.
If our military leadership was this sincere, we sould have been Asian tiger long time ago. Its military which has been ruling the country directly or indirectly for last 75 years. Even after 75 years, we are still begging a billion or 2 dollars.
ReplyDeleteThe world’s biggest bet on India
ReplyDeleteWhat Tata’s $90bn pivot to its home market says about the planet’s fifth-biggest economy
https://www.economist.com/business/2022/09/14/the-worlds-biggest-bet-on-india
If you want to glimpse the frontier of Indian capitalism, take a trip to Tamil Nadu in the south of the country. New factories with solar panels on their roofs lie on a vast 550-acre (220-hectare) site. Inside, it is reported, Tata is making components for the latest iPhones on behalf of Apple—and in the process finally connecting India to the world’s most sophisticated supply chain, which used to be anchored to China.
The project is not a one-off. It is part of a new and staggering $90bn investment surge by India’s biggest business that is repositioning itself towards its home market and away from its 30-year strategy of fanning out globally. Tata’s ambition to create electronics factories and semiconductor fabs in India could transform its economy. “I firmly believe that this is going to be India’s decade,” says Natarajan Chandrasekaran, who runs the holding company, Tata Sons, which oversees the group. The change in strategy also reflects the dramatic psychological shift within the business world’s most ardent globalisers, as they adapt to new megatrends. These include the rebasing of strategic manufacturing away from China; the rise of a new energy system; and industrial policy, which in India is being championed by Prime Minister Narendra Modi.
Anyone who follows India, the world’s fastest-growing big economy, may be under the impression that it is run by Mukesh Ambani and Gautam Adani, two swaggering tycoons, whose conglomerates generate headlines and make them Asia’s richest men. Together the “two As” may spend over $100bn in the next five years. Yet Tata is in fact the country’s biggest business measured by market value ($269bn) and operating profits ($16bn last year), spanning everything from steel mills to software. And we estimate that its new plans are larger than any other individual firm’s, encompassing electric vehicles (evs), electronics, battery gigafactories, clean power and chips (see chart 1). If that doesn’t sound ambitious enough, it has also taken on the Everest of corporate turnarounds, buying Air India.
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But even Tata, which considers itself aloof from politics, has paid symbolic homage to Mr Modi’s populist nationalism. In 2019 Mr Tata visited the headquarters of the rss, the Hindu-chauvinist association that backs Mr Modi. In the same year Mr Modi attended the launch of a book by Mr Chandrasekaran. The Tata charities are also working more closely with the state, for example on hospitals. And Tata is participating in India’s $26bn manufacturing-subsidy scheme (though it insists the handouts are too small to swing investment decisions).
Pakistan Exports 120,000 Locally Manufactured Mobile Phones
ReplyDeletehttps://propakistani.pk/2022/12/14/pakistan-exports-120000-locally-manufactured-mobile-phones/
The export ceremony of locally manufactured mobile phones by Pakistan Telecommunication Authority (PTA) Authorization holder Inovi Telecom was held at PTA headquarters today.
The ceremony was held to mark Inovi’s achievement of the export of 120,000 locally made mobile phones of the SEGO brand to the United Arab Emirates for African markets.
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Inovi Telecom is the first company to export locally manufactured mobile phones in large quantities. Inovi’s CEO appreciated PTA for its active support and for taking measures to help bolster the mobile industry. Moreover, both PTA Members extended their continued support for the development of a mobile device manufacturing ecosystem in Pakistan.
Inovi Telecom Pvt. Ltd was issued Mobile Device Manufacturing Authorization on 9th April 2021 in accordance with the PTA Mobile Device Manufacturing (MDM) Regulations, 2021.
iPhone Exports from India Double to Surpass $2.5 Billion
ReplyDeletehttps://www.bloomberg.com/news/articles/2023-01-09/iphone-exports-from-india-double-to-surpass-2-5-billion?leadSource=uverify%20wall
Foxconn Technology Group and Wistron Corp. have each shipped more than $1 billion of Apple’s marquee devices abroad in the first nine months of the fiscal year ending March 2023, people familiar with the matter said. Pegatron Corp., another major contract manufacturer for Apple, is on track to move about $500 million of the gadgets overseas by the end of January, the people said, asking not to be identified revealing private information.
Apple’s rapidly growing export numbers illustrate how it is ramping up operations outside of China, where chaos at Foxconn’s main plant in Zhengzhou exposed vulnerabilities in the Cupertino-headquartered company’s supply chain and forced it to trim output estimates. That compounded a broader problem with evaporating demand for electronics as consumers weigh the risks of a global recession.
Apple, the world’s most valuable company, began assembling its latest iPhone models in India only last year, a significant break from its practice of reserving much of that for giant Chinese factories run by its main Taiwanese assemblers including Foxconn.
While India makes up just a fraction of iPhone output, rising exports bode well for Prime Minister Narendra Modi’s plan to make the country an alternative to China as factory to the world.
China’s Covid Zero policies and an episode of violence at the Zhengzhou plant — nicknamed iPhone City as the world’s biggest production center for the device — laid bare the dangers of relying on the country. While Beijing has since dropped that approach to containing the virus, Apple and other global names are exploring alternative locations more than ever before.
India’s vast workforce, Modi’s support and a thriving local market make it a prime candidate to take on more electronics manufacturing. Foxconn, Apple’s largest supplier, began building facilities in the country more than five years ago in anticipation of a need to extend its geographic range.
One recent selling point is a raft of new government incentives, a cornerstone of Modi’s drive to make India an electronics manufacturing hub. Foxconn has won 3.6 billion rupees ($44 million) of benefits in the first year of the so-called production-linked incentives scheme, while Wistron’s claims are currently being processed, the people said.
Representatives for Apple, Foxconn and Wistron didn’t respond to emails seeking comment. A Pegatron spokesperson declined to comment.
Apple’s contract manufacturers currently make iPhones at plants in southern India. But production in the country is just beginning. About 3 million of the devices were made in India in 2021, compared with 230 million in China, according to Bloomberg Intelligence estimates.
Foxconn began making the iPhone 14 in India a few months ago — sooner than anticipated — after a surprisingly smooth production rollout that slashed the lag between Chinese and Indian output from months to mere weeks. Apple’s three Taiwanese partners currently assemble iPhones 11 to 14 in India.
But moving out of China, where Apple has built a deep supply chain for close to two decades, isn’t easy. A Bloomberg Intelligence analysis estimated it would take about eight years to move just 10% of Apple’s production capacity out of China, where roughly 98% of the company’s iPhones are being made.
India tracks production and exports of all smartphone makers who enjoy financial incentives as part of Modi’s push.
Beyond smartphones, the country is drawing up plans to boost financial incentives for tablet and laptop makers, hoping to woo Apple to make everything from earphones to MacBooks locally as well as attract other brands. The iPhone maker is also expected to open its first retail store in India in 2023, after meeting certain criteria imposed on foreign retailers.
Mobile policy attracts 36 companies to manufacture smartphones in the country
ReplyDeletehttps://profit.pakistantoday.com.pk/2023/01/23/mobile-policy-attracts-36-companies-to-manufacture-smartphones-in-the-country/
Like the auto industry in Pakistan, the mobile phone industry has also attracted at least 36 companies to manufacture/assemble smartphones under the policies introduced by the government in 2020.
According to officials, the ‘Make in Pakistan’ policy introduced by the previous Imran Khan government has resulted in the establishment of 31 companies which manufacture a great number of renowned international mobile phone brands in the country.
As per the data, local manufacturing plants have manufactured over 19.7 million phone handsets during the first 11 months of 2022 compared to just 1.37 million commercially imported phone handsets. Data provided by the Pakistan Telecommunication Authority (PTA) reveals that the local manufacturing plants assembled 1.56 million mobile phone handsets in November 2022
Despite the increase in local production, the country imported mobile phones worth $ 290.57 million during the first five months (July-November) of the current fiscal year 2022-23. However, this was a decrease of 66.08 percent when compared to the imports of the same period last year at $ 856.73 million.
To review further expansion and issues related to the newly flourishing industry, the Ministry of Industries & Production (MoI&P) will hold a mobile device manufacturing summit on Tuesday (today). As per the officials of the Engineering Development Board (EDB), the relevant department of the MoI&P is jointly organising the summit in collaboration with the Pakistan Mobile Phone Manufacturers Association.
The summit will be addressed by the Federal Minister for Board of Investment, Chaudhry Salik Hussain, and will also include an exhibition of technology and products by the members of association including Xiaomi, Realmi, Infinix, Tecno, Itel, Alcatel, G-Five, Oppo, Vivo, Premier Code etc. The exhibition will be open for targeted general public.
According to officials, the purpose of organising this summit-cum-exhibition is to get input from all the relevant stakeholders which includes mobile device manufacturers, government officials from MoI&P, PTA, Ministry of Commerce, National Tariff Commission, Board of Investment, Ministry of IT & Telecom, Federal Board of Revenue and academia to boost local assembly of mobile devices through enhancing investment and employment opportunities in this sector.
The summit will focus on the localisation of parts and components used in mobile manufacturing, localisation of allied equipment like laptops and tablets, targeting export of mobile phones and promoting ease of doing business in Pakistan. The mobile device manufacturing sector is expected to benefit from this summit as it will facilitate further collaborations with international counterparts which can enhance the competitiveness of the sector.
The mobile device manufacturing policy was formulated by EDB in 2020 with the aim to promote local manufacturing of mobile devices in Pakistan and to provide an attractive environment for investors under the “Make in Pakistan” policy of the government.
According to data by PTA, 55 percent of the mobile devices in the country are smart phones while the remaining 45 percent are on 2G Pakistan network.
Business Recorder
ReplyDelete@brecordernews
Indus Motor Company, the assembler of Toyota-brand vehicles in Pakistan, said on Tuesday that it has become the first company in the four-wheeler segment to start exports after it signed an agreement with Toyota Egypt.
https://www.brecorder.com/news/40252013/pakistans-indus-motor-company-starts-exports-to-toyota-egypt-ceo
Agreement signed, Ali Asghar Jamali says 'too early' to deem it turning point for struggling auto sector
“We have already sent our first shipment this month,” Chief Executive Ali Asghar Jamali told Business Recorder.
A press release issued by the company also stated that the first consignment of semi-processed raw material to be shipped to Toyota Egypt will mark the “beginning of era from the export point of view by any original equipment manufacturer (OEM) in Pakistan and plans are in place to continue in this direction”.
Jamali said that while significant, it is “too early” to deem it a turning point for the struggling industry.
His remarks come as Pakistan’s auto sector, highly dependent on imports to meet its assembling needs, remains under pressure due to constraints on issuance of Letters of Credit (LCs). The hindrance comes on the back of Pakistan’s low foreign exchange reserves that triggered import restrictions.
While the State Bank of Pakistan (SBP) has lifted restrictions, it will take some time before normalcy returns.
At the same time, a fast-depreciating rupee pushed up prices of automobiles while runaway inflation also took Pakistan’s key interest rate to a record high, discouraging buyers from financing. In response, almost all auto sector’s players have been announcing plant shutdowns with regular monotony.
“This is a baby step at the moment,” said Jamali. “Currently, we have raw material constraints in the country. It would stop us from exporting huge quantities. But I am hopeful.”
The CEO said the company will only be exporting a certain part to Egypt.
“If their confidence is built, we may be asked to export more parts.
“Even if we manage to export one part to many markets, it would increase our export numbers.
“We hope that other manufacturers would also get confidence and find avenues to export as well,” he added.
A statement from the company, meanwhile, said the partnership with Toyota Egypt “is the first step to meet requirements set under the Auto Industry Development and Export Policy (AIDEP) 2021-2026”.
Revenue in Pakistan Laptops market amounts to US$0.88bn in 2023. The market is expected to grow annually by 5.52% (CAGR 2023-2028).
ReplyDeleteIn global comparison, most revenue is generated in China (US$23,250.00m in 2023).
In relation to total population figures, per person revenues of US$3.75 are generated in 2023.
In the Laptops market, volume is expected to amount to 1.54m pieces by 2028. The Laptops market is expected to show a volume growth of 2.5% in 2024.
The average volume per person in the Laptops market is expected to amount to 0.01pieces in 2023.
https://www.statista.com/outlook/cmo/consumer-electronics/computing/laptops/pakistan
Yousuf M.Farooq
ReplyDelete@YousufMFarooq
Localization
Full speed ahead
LED Lights Made in Pakistan !
The industry started with just assembling SKD kits imported from China.
Now the PCB, MCPCB, the constant current power supply, plastic parts, metal parts, wires and packaging are now all being Made in Pakistan.
https://twitter.com/YousufMFarooq/status/1694184000137375825?s=20
Technology
ReplyDeleteXiaomi’s Local Partner to Start Selling TVs in Pakistan
Air Link aims to start assembling televisions in January
Mobile assembler also plans to ramp up mobile phone output
https://www.bloomberg.com/news/articles/2023-08-15/xiaomi-s-local-partner-to-start-selling-tvs-in-pakistan?in_source=embedded-checkout-banner
By Faseeh Mangi
August 15, 2023 at 1:40 AM PDT
Pakistan’s Air Link Communication Ltd. plans to start assembling Xiaomi Corp. televisions in January to sell in the world’s fifth-largest nation.
The companies, which forged a partnership two years ago to sell mobile phones in Pakistan, don’t expect major investment will be needed since the assembly lines for both products are quite similar, Air Link CEO Muzzaffar Hayat Piracha said in an interview.
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https://propakistani.pk/2023/08/15/air-link-communication-to-start-assembling-xiaomi-tvs-in-pakistan/
Piracha said that Air Link has become profitable in the past six months. The company aims to raise mobile phone production to around 500,000 per month by the end of the year, up from 300,000 currently, he added.
Air Link, which began operations as a mobile phone reseller just over 10 years ago, became Pakistan’s largest private sector public offering when it was listed at PSX in 2021. It has since become one of the country’s largest smartphone distributors.
Pakistan has recently seen a slight uptick in the revival of business operations by foreign enterprises ever since the International Monetary Fund agreed to a new bailout program to revive the economy. The IMF demanded that the country remove all import restrictions, which has appealed to distributors like Air Link.
Over the past few years, Pakistan’s electronic industry has continued to grow at a rapid pace. State Bank of Pakistan (SBP) reported an amazing 7.8 percent growth during the first quarter (Q1) of the fiscal year 2018-19.
ReplyDeleteThe Quarterly Report for FY19 states that the consistency in the growth of the electronic market has not only attracted the interest of local investors but also the foreign investors. For example, the third largest television set producer in the world, TCL, has announced its plans to extend its operations in the Pakistani electronic market.
“Improvement in electricity supplies alongside an extended summer season drove the demand for the electronic goods. The consistent growth of the segment has attracted the attention of the foreign investors as well,” stated the report.
The report also highlights the factor that played a substantial role in electronic growth. The report suggests that the production of electronic appliances such as smartphones, different types of cooling equipment, electric motors, TVs, watches, and electronic security systems have found a considerable rise over the past few years.
However, the report presents an overall challenging macroeconomic environment during the first quarter of FY19. The report also shows a 4.0 to 4.5 percent growth in real gross domestic product, which is less than its October forecast of 4.7-5.2 percent growth.
“The primary concern was the steep rise in global crude prices, which not only reinforced the already strong underlying inflationary pressures in the economy but also eclipsed emerging improvements in the external sector,” it stated.
Why Pakistan is your next Technology Hub?
ReplyDeletehttps://zigron.com/2024/05/24/why-pakistan-is-your-next-technology-hub/
Pakistan – The Next Technology Hub
The world will need 80M software engineers by 2030 to keep up with the technological pace. There will be a shortage of estimated 30M technologists, and with the Russia/Ukraine war, this gap will only grow. With India up to its neck and talent gobbled up by more prominent companies; Pakistan is the only logical destination for technology resource hiring. Pakistan has universities, advanced infrastructure, government policies, and existing 300,000 talent growing rapidly by multitudes. With all these in place, Pakistan is today’s destination for finding tech talent. With Zigron’s past and current experience of serving startups to multi-billion dollar organizations; Zigron is here to bridge this gap for the companies facing a shortage of skilled tech workers today and in the future.
Why is Pakistan being termed Asia’s next Tech Hub?
Pakistan is the 3rd largest IT-enabled services exporter, with more than 40 percent software development. Pakistan is continuously creating high-tech industries and expanding its cyber security, system integration, data center, and IT outsourcing, i.e., AI, ML, IoT, Blockchain, Big Data Analytics, and Cloud Engineering. The biggest reason of all is that Pakistan is home to more than 144 universities; with some top-ranked world universities like NUST, GIKI, FAST, LUMS, UET, NED, etc., offering IT and Engineering degree programs that have so far produced over 300,000 IT professionals with expertise in AI/ML, Data Scientists, Full Stack, DB, DevOps, Designers, UI/UX, Embedded, Firmware Engineers, etc. In addition, they have been producing hardcore engineers like Electrical, CAD, Structural, Solar, Wind, Civil, Geotechnical, etc.
Pakistani universities are on the mission to make world-class talent and continue to do so with skills unmatched and dexterity unprecedented. Sky being the limit, skilled Pakistani talent is all you need to grow into a giant organization with technology expertise like AI, ML, IoT, Blockchain, Big Data Analytics, Cloud, etc. With all the efforts to further support and advance these industries; Govt is expecting 50 billion USD annual exports from the technology sector by 2030. With a lot to offer in the tech industry; Pakistani engineers are fully equipped to play their vital role in helping companies grow and succeed. Zigron also takes huge pride in being a pioneer in offering top-of-scale IT services and Engineering talent globally over the past 15 years and continues to enrich the IT world with its state-of-the-art solutions and services.
Pakistan’s IT exports are at an all-time high, with over a 30 percent growth in the last eight months.
Pakistan has made significant successes in IT exports and crossed a mark of 2 billion USD last year. Although numbers are good; there is still a significantly undiscovered IT talent that is yet to be unleashed and utilized to the full extent. Seeing the tech-minded youth, Prime Minister Imran Khan launched a ‘Digital Pakistan’ initiative; focusing on connectivity, digital infrastructure, digital skills, innovation, and entrepreneurship to further upskill the unexplored talent. The government of Pakistan has taken the forefront to uplift tech minds and help them grow by establishing a Special Technology Zones Authority (STZA) to develop a high-tech economy for rapid growth.
Ronin established the first smart wearables and tech accessories industry! - DAWN.COM
ReplyDeletehttps://www.dawn.com/news/1888226
Ronin's new tech manufacturing facility enhances self-reliance, reduces imports, and boosts economic growth through quality smart wearables and accessories.
Pakistan has reached a remarkable milestone by developing a domestic industry for manufacturing and assembling earbuds, smartwatches, and other tech accessories. This remarkable achievement is made possible by Ronin, a homegrown brand offering quality smart wearables and tech accessories such as earbuds, smartwatches, headphones, neckbands, power banks, and other charging devices to consumers in Pakistan. It marks a significant step in the country’s progress toward industrial growth and self-reliance.
The demand for smart wearables and accessories has been growing rapidly in Pakistan because of the high consumption of mobile phones. Before this industry was established, Pakistan relied entirely on imports as different brands imported these products from overseas to meet the demand. This increased the trade deficit and filled the market with low-quality products, causing consumers to lose trust in these categories. However, Ronin’s achievement has changed everything.
Ronin, a prominent tech brand, has played a key role in making this vision a reality. By analysing the challenges in the market and recognising the immense potential, Ronin took the bold step of setting up a state-of-the-art industry dedicated to manufacturing and assembling smart wearables and accessories within Pakistan. This facility is now producing top-quality earbuds, smartwatches, headphones, neckbands, and other tech products domestically.
Local mobile phone manufacturing rises 28pc MoM in December
ReplyDeletehttps://www.thenews.com.pk/print/1280447-local-mobile-phone-manufacturing-rises-28pc-mom-in-december
On a quarterly basis, local production climbed to 8.79 million units in the fourth quarter of 2024, marking a 67 per cent rise compared to 5.25 million units in the third quarter. This surge pushed the total annual output for 2024 to 31.38 million units, reflecting a 47 per cent year-on-year (YoY) increase, primarily driven by import restrictions imposed last year.
Despite this remarkable recovery, the YoY growth compared to 2022 remained at 43 percent, bolstered by factors such as economic stabilisation, a growing preference for locally assembled mobile phones amid higher taxes on imports, and a steadily increasing population, said Sunny Kumar, an analyst at Topline Research.
Out of the 31.38 million locally assembled mobile phones produced in 2024, smartphones accounted for 59 per cent (18.64 million units), while the remaining 41 per cent (12.74 million units) were 2G feature phones.
The top 10 brands contributing to local assembly included Infinix with 3.98 million units, followed by Itel (3.64 million units), VGO Tel (3.37 million units), Tecno (2.85 million units), Vivo (2.77 million units), Xiaomi (2.35 million units), Realme (1.76 million units), Samsung (1.51 million units), G’Five (1.44 million units) and Nokia (1.36 million units).
The data further revealed that local manufacturing fulfilled 95 per cent of the country’s mobile phone demand in 2024, compared to an average of 67 per cent over the past five years (2019-2023) and 47 per cent over the past eight years (2016-2023).
According to Topline Research, Tecno and Xiaomi smartphones ranked among the top 10 brands in 2024. Tecno’s production surged 97 per cent YoY to 2.85 million units, while Xiaomi’s production saw a 79 per cent YoY increase, reaching 2.35 million units.
As US-China trade war escalates, could Pakistan be Beijing's EV loophole? - CSMonitor.com
ReplyDeletehttps://www.csmonitor.com/World/Asia-South-Central/2025/0214/China-EV-boom-Pakistan-trade
Amid the ornately painted trucks bellowing smoke and the green and yellow tuk-tuks, the Chinese-made Haval Hybrid Electric Vehicle has become a ubiquitous sight on the streets of Islamabad.
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Some are looking to neighboring Pakistan, a country of 240 million which has so far welcomed Chinese automakers, to buoy sales – and possibly bypass (US) tariffs. In recent months, several Chinese automakers have either doubled down on their Pakistan projects or made their first foray into the market.
As EVs become an increasingly important geopolitical battleground, former Pakistan finance minister Miftah Ismail says that, at least in the short-term, Pakistan could serve as a sort of pressure release valve for Beijing. But he predicts the West will eventually catch up.
“The West will say that EV components have to be made in certain countries, or that 70% of the value addition has to be done in the country that exports,” he says. “It's a cat and mouse game. The West will find other ways of placing restrictions on the Chinese.
An alliance on the rocks
In October, Chinese battery giant Build Your Dreams (BYD) formally entered the Pakistani market with two electric vehicles, partnering with the country’s largest private electricity producer to facilitate the expansion. The move came after the U.S. and Canada both decided to impose a 100% tariff on Chinese electric vehicle imports, and the European Commission voted to raise its own tariffs by 35%.
Its expansion represents a boost to the business relationship between China and Pakistan at a time when both seem to be running out of friends – and when their own alliance has grown fraught.
Though China has long considered Pakistan a key part of its ambitious Belt and Road Initiative, a series of recent attacks on Chinese nationals working in Pakistan has injected the relationship with tension. After an explosion at Karachi’s Jinnah International Airport in October claimed the lives of two Chinese citizens, Chinese Ambassador Jiang Zaidong called the attacks “unacceptable.”
Still, there is a sense that neither side can afford to downgrade their relationship.
Pakistan has fraught relations with all three of its other neighbors, while China has been accused of an increasingly hostile approach towards foreign businesses, driving down foreign direct investment.
“It’s an important and close partnership, albeit one that has stumbled in recent months,” says Michael Kugelman, who directs the Wilson Center’s South Asia Institute. “In that regard, this EV plan could be not just an economic win, but also a confidence building measure.”
Economic win for who?
For China, Pakistan could be the key to tapping into the U.S. market, says Usman Qadir, senior research economist at the Pakistan Institute of Development Economics.
“If they are able to assemble their vehicles in Pakistan or a third country, then they can bypass tariffs and get into the market with their lower prices,” he says.
Pakistanis could benefit, too.
BYD and its local partner announced plans to build an assembly plant in Karachi by early 2026. They estimate that as many as half of the vehicles sold in Pakistan by 2030 will be electrified – by which time BYD hopes that its vehicles will make up a quarter of all sales.
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So far, the Chinese EVs launched in Pakistan have largely targeted the luxury market.
But whatever their long-term motive, it is clear that Chinese EV makers are having an impact; Japanese automakers, which have historically dominated the Pakistani market, have begun slashing their prices out of concern that they might lose ground.
Pakistan is the New Frontier for Chinese EV Expansion - The China-Global South Project
ReplyDeletehttps://chinaglobalsouth.com/analysis/pakistan-is-the-new-frontier-for-chinese-ev-expansion/
Policy Backing and Strategic Intent
As part of its climate commitments under the Paris Agreement, Pakistan is pushing to expand electric vehicle adoption. The country’s New Energy Vehicle (NEV) policy for 2025–2030 targets 30% of all vehicles to be electric by 2030, rising to 90% by 2040. To support this transition, the government is offering incentives such as tax breaks, reduced import duties, and green financing.
Also, there is potential to turn Pakistan into a manufacturing base, eventually exporting to other populous countries like Sri Lanka or Bangladesh. Islamabad aims to export EVs to emerging markets in Central Asia and the Middle East, though balancing foreign investment with support for local players remains a challenge.
Pakistan also has the potential to become a regional automotive manufacturing hub, with an eye toward exporting vehicles to other densely populated markets in South Asia, namely Sri Lanka and Bangladesh. The government is also targeting emerging markets in Central Asia and the Middle East. However, the government must be careful, though, not to lure too much foreign investment into the auto sector, so that it places undue hardships on legacy companies in the market.
Hurdles and Hope
High upfront costs remain one of the biggest barriers to EV adoption in Pakistan. While Chinese EVs are often more affordable than other options, they are still out of reach for most ordinary consumers. Expanding access will require targeted financing and subsidy programs.
Meanwhile, despite having surplus generation capacity, Pakistan’s power grid continues to face periodic shortfalls. Expanding fast-charging infrastructure is essential. To that end, BYD Pakistan is working with oil marketing companies to install 20–30 fast chargersacross major cities.
But cost and electricity aside, the biggest obstacle is that consumers still don’t know very much about electric vehicles and scooters. And combined with the fact that after-sales service for EVs is still at a nascent stage, it may prove very difficult for the government to surpass its goal of 30% market share for EVs by 2030.
Naeem Haroon, CEO of a company in Pakistan’s main commercial hub Karachi, isn’t discouraged by the challenges of being an early EV adopter. Haroon recently bought a new BYD, attracted to the brand’s stylish designs and lower maintenance costs that come with owning an electric car.
“Pakistan’s EV charging infrastructure is still in its early stages. Many potential buyers are deterred by limited charging infrastructure, high upfront costs, and misconceptions about EV performance, battery life, and maintenance costs,” Haroon said.
He said those concerns, while legitimate, are more than offset by the savings he gets from lower fuel costs and much less maintenance on a car without an internal combustion engine. And the fact that these are Chinese-made cars is even better. “The growing partnership between Pakistan and China in the automotive sector will drive innovation,” Haroon explained.
After India’s rejection, China’s BYD invests $1 billion to build a large car factory in Pakistan!
ReplyDeletehttps://youtu.be/gBNKshxeJYM?si=ck-BzkMWHbm8sk7L
BYD, China’s electric vehicle giant, faced a surprising hurdle when India rejected its $1 billion proposal for an EV super factory in Hyderabad, despite years of investment and local expansion. This unexpected move has left global analysts questioning India’s unpredictable approach to foreign investment, especially from neighboring nations. As regulatory challenges and political tensions mounted following a 2020 border clash, BYD ultimately shifted its focus to Karachi, Pakistan—a strategic location with easier access to ports, political stability, and strong China-Pakistan ties. Discover how BYD’s shift highlights differences in investment climates between India and Pakistan and what this means for the future of the EV industry in South Asia. Like and share if you found this analysis insightful!
Pakistan's Mobile Manufacturing Soars in 2025.
ReplyDeleteLocal plants assembled 14.24 million mobile phones in the first half of 2025, a massive leap compared to just 0.86 million imported units. In June alone, 2.19 million handsets were made locally, while only 0.1 million were imported.
https://www.techjuice.pk/pakistan-mobile-manufacturing-assembles-14-24-million-mobiles-in-2025-h1/
The local manufacturing/assembling plants manufactured/ assembled 14.24 million mobile handsets during the first six months (January-June) of the calendar year 2025, compared to 0.86 million imported commercially. Official data revealed that 2.19 million mobile handsets were manufactured/assembled in June, compared to 0.1 million imported commercially.
Local manufacturing/assembling plants manufactured/assembled 31.38 million mobile phone handsets during the last calendar year, 2024, compared to 1.71 million imported commercially. The 14.24 million mobile handsets manufactured/assembled locally included 7.63 million 2G and 6.6 million smartphones.
Besides, as per the PTA data, 68 percent of mobile devices are smartphones, and 32 percent are 2G on the Pakistan network.
Pakistan imported mobile phones worth $1.494 billion in the fiscal year 2024-25, registering a negative growth of 21.31 percent compared to $1.898 billion during 2023-24.
In terms of Pakistani rupees, the total value of mobile phone imports stood at Rs 417.351 billion during fiscal year 2024-25. This represents a 22.09 percent decline when compared to Rs535.690 billion in the same period of 2023-24. On a month-on-month (MoM) basis, Pakistan’s mobile phone imports saw a 39.60 percent increase, totalling $139.425 million in June 2025, compared to $99.875 million in May 2025. This is a 49.95 percent decrease year-on-year (YoY) when compared to $278.574 million in June 2024.
Husain Haqqani
ReplyDelete@husainhaqqani
A decade ago, IT exports accounted for barely 2–3 percent of Pakistan’s goods and services exports; today, they are close to 10 percent.
https://x.com/husainhaqqani/status/1949844564849607043
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https://www.brecorder.com/news/40374855
Pakistan’s IT and ICT exports touched a historic high in FY25, clocking in at $3.8 billion. That’s an 18 percent jump over last year, though shy of the government’s $4 billion target and slower than the 24 percent growth seen in FY24.
June alone brought in $338 million, up 14 percent year-on-year and 3 percent month-on-month, taking monthly exports above the 12-month average of $314 million. Net IT exports (after imports) also reached $306 million for the month, up 20 percent year-on-year.
The story remains anchored in computer services, which pulled in $3.24 billion, up from $2.65 billion last year, while telecom exports stalled at $554 million. Information services, though small, more than doubled to $21 million, hinting at a slow but growing diversification within the export basket.
Yet, even with the record-breaking performance, the missed target underscores persistent structural bottlenecks. Pakistan’s IT sector still grapples with talent shortages, rising wage pressures, and patchy connectivity, while global tech spending slowed as firms cut back on budgets.
Tax and payment reforms have also lagged, limiting exporters’ ability to fully ride global demand. The slower growth rate in FY25 compared to FY24 can also be attributed to a base effect since FY24 had already seen an unusually high jump of 24 percent year-on year.
Policy support has, however, cushioned the sector. The State Bank allowed exporters to retain 50 percent of their foreign earnings (up from 35 percent) and even invest abroad, encouraging them to repatriate a larger share of profits.
Pakistani IT firms have also been busy expanding their global footprint, tapping into the GCC market, and highlighting at international events like London Tech Week 2025 and the Pak-US Tech Investment Conference.
A decade ago, IT exports accounted for barely 2–3 percent of Pakistan’s goods and services exports; today, they are close to 10 percent.
The government’s ambition is to hit $10 billion by FY29 under the “Uraan Pakistan” plan, which implies an annual growth rate of 27 percent. Whether that materializes will depend on how fast Pakistan can fix infrastructure gaps, build a skilled talent pipeline, and simplify its regulatory framework.
Big win for Pakistan’s tech scene!
ReplyDeleteViper Technology has kicked off local manufacturing of laptops and desktops, aiming to make tech more affordable and accessible.
Partnering with Chinese ODMs, they’re not just assembling devices but also creating jobs and reducing foreign exchange costs.
https://www.techjuice.pk/pakistans-first-it-hardware-manufacturer-emerges-viper-technology/
Viper Technology, which has long designed and assembled laptops, desktops and other computing solutions in Pakistan, has now begun manufacturing its hardware lineup locally.
The company’s hardware lineup includes a range of devices tailored for both everyday users and high-performance needs, making tech accessibility more affordable for local consumers. In an exclusive conversation with TechJuice, Khushnood Aftab Shaikh, CEO of Viper Technology Group, shared that the company has partnered with Chinese ODM suppliers to locally manufacture components and assemble final products in Pakistan. He stated,
“China has established itself as a global technology powerhouse. For Pakistan, this is not just a trend to observe; it’s an opportunity to act. By localizing production and pursuing tech partnerships, we can reduce foreign exchange spending and foster skilled employment.”
Despite these efforts, Viper continues to face business challenges. “Whoever is handling local setups in Pakistan often lacks the technical depth to manage such operations effectively,” Shaikh noted. He emphasized the need for long-term policy support and technical infrastructure to strengthen this emerging sector.
What Viper Offers
On the market, Viper’s products include options like the Viper P40 Notebook, available for around PKR 72,000, featuring a Core i3-10th Gen processor and SSD storage, suitable for students and professionals alike. At the higher end, devices such as the Viper Expeder X, with an Intel i7 CPU and RTX 3060 GPU, cater to power users and gamers.
Viper Technology Group claims to be Pakistan’s first locally based IT hardware manufacturer now, a milestone that not only underscores its own achievement but also signals a broader shift toward homegrown tech innovation, greater industrial self‑reliance, and accelerated digital transformation across the country. Even so, the industry still faces hurdles such as limited manufacturing infrastructure and complex regulations that will need to be addressed to sustain and grow local production.
Systems Limited acquires British American Tobacco SAA Services to expand global footprint - Profit by Pakistan Today
ReplyDeletehttps://profit.pakistantoday.com.pk/2025/07/30/systems-limited-acquires-british-american-tobacco-saa-services-to-expand-global-footprint/
Systems Limited’s associated firm Techvista Systems FZ LLC also enters into multiyear long-term deal for Business Process Outsourcing Services with Accenture (UK) Limited
Systems Limited has announced the acquisition of British American Tobacco SAA Services (Private) Limited from British American Tobacco International Holdings (UK) Limited.
The company disclosed this development through a notice to the Pakistan Stock Exchange (PSX) on Wednesday in accordance with Sections 96 and 131 of the Securities Act, 2015 and the relevant provisions of the PSX.
Systems Limited’s board approved the acquisition at a meeting on July 29, 2025.
“We hereby wish to inform you that Systems Limited in its Board meeting dated 29th July 2025 considered and approved the acquisition of British American Tobacco SAA Services (Private) Limited (“Target Company”) from British American Tobacco International Holdings (UK) Limited (“Seller”),” read the company’s notice.
Systems Limited stated that the primary business of the acquired company involves providing services in areas such as Information Technology (IT) and IT-driven shared and digital business services.
These services include, but are not limited to, consumer and customer support through omni-channel contact centers, marketing operations, HR operations, finance operations, procurement, and supply chain services. These offerings cater to multiple regions and align with Systems Limited’s business process outsourcing (BPO) service line.
The company also approved and entered into Share Purchase Agreement and the aggregate purchase price on the same date.
It said that the completion of the acquisition transaction will remain subject to satisfaction of conditions precedent and applicable regulatory approvals.
Additionally, Systems Limited’s affiliate, Techvista Systems FZ LLC, which is incorporated under UAE law, has entered into a long-term Master Services Agreement with Accenture (UK) Limited on July 29, 2025.
This multiyear agreement is for Business Process Outsourcing (BPO) services, where Techvista will act as a subcontractor to provide AI-powered global shared services through the newly acquired company.
Husain Haqqani
ReplyDelete@husainhaqqani
Pakistan’s Nishat Group has earmarked $100 million to build electric-powered vehicles in partnership with one of China’s largest car exporters, Chery Automobile Co.
Local car assembling starts in October, & manufacturing will follow.
@business
reports.
https://x.com/husainhaqqani/status/1951209832200958217
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Faseeh Mangi
@FaseehMangi
Pakistani tycoon Mian Mansha is setting up a factory to build EV cars with one of China’s largest car exporters, Chery Automobile
The conglomerate has earmarked about $100 million
They plans to debut five cars today and start local assembling in Oct.
https://x.com/FaseehMangi/status/1951189257227223537
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Nishat, Chery launch Omoda, Jaecoo
https://www.dawn.com/news/1928185/nishat-chery-launch-omoda-jaecoo
LAHORE: One of Pakistan’s leading business conglomerates, Nishat Group, has partnered with Chery International — China’s largest automobile exporter — to launch its global brands, Omoda and Jaecoo, in the local market. The high-profile unveiling event was held on Friday.
The group announced plans to establish a car manufacturing facility near Faisalabad, with local assembly of electric vehicles (EVs) expected to commence in November. An investment of $100 million will be made through its subsidiary, Nexgen Auto, to support EV manufacturing and marketing operations in Pakistan.
In a significant industry first, five car models were unveiled simultaneously — more than typically seen at automotive launches. The line-up included two long-range battery electric vehicles (E5 and J6), two plug-in hybrids (J7 and C7), and a hybrid vehicle (J5). The event was attended by a broad spectrum of participants, including political figures, environmental advocates, automotive influencers, and car enthusiasts.
Speaking at the event, Nishat Group Chairman Mian Mohammad Mansha welcomed the government’s focus on electric mobility, calling it a timely move to address climate and economic challenges. He said the group had chosen to partner with Chery International due to its commitment to environmental sustainability.
“The introduction of electric vehicles will help combat pollution and significantly reduce the country’s oil import bill,” he said. He added that his group’s existing automotive venture, Hyundai, has already sold over 50,000 units. Mr Mansha also announced plans to offer bank financing for electric cars through MCB Bank, another entity under the Nishat umbrella.
Mr Qi Joe, President of Chery International South Asia, expressed confidence in the partnership, stating that the collaboration would help position Omoda and Jaecoo among Pakistan’s top car brands.
In a statement, the company said the launch highlighted Nishat Group’s commitment to innovation and excellence. “The unveiling of a future-ready line-up, tailored to the evolving needs of Pakistani consumers, reflects Nishat Group’s strategic vision for the country’s automotive industry,” it noted.
The event marks a milestone for Nexgen Auto in its goal to redefine mobility in Pakistan by introducing cutting-edge technology, sustainable design, and intelligent performance. With the entry of Omoda and Jaecoo, the company aims to bring global innovation and a modern driving experience to local roads, setting a new industry benchmark.