Xiaomi Technology, a Chinese mobile manufacturing company, inaugurated its smartphone manufacturing plant in Pakistan on March 4, 2022. The announcement came from Hammad Azhar, Pakistan’s Energy Minister, in a tweet where he said that “Xiaomi Technology inaugurates its Manufacturing Facility in Pakistan.” Xiaomi partnered up with a local company Airlink Communications, with a plan to invest $500 million in the local mobile industry.
The announcement was much anticipated when on the 28th of February 2022, Airlink announced that it was set to commence production of Xiaomi handsets in the country.
Airlink is one of the biggest smartphone retailers, manufacturers, and distributors in the country and is an official partner of leading international smartphone brands such as Samsung, Huawei, TCL, Alcatel, and Tecno. Airlink Communications is also the authorized reseller of Apple products in the country.
Read More: Engro injects a further PKR 14 billion into its Telecom Infrastructure Vertical
Xiaomi’s entry into the Pakistani market is likely to generate a sales volume of Rs.550 million annually and simultaneously create job opportunities for hundreds of people. Xiaomi is a global technology giant with a current standing of 334 in the Fortune Global 500 companies. According to brecorder, the brand made record 190.4 million smartphone shipments in 2021. Xiaomi’s entry into the Pakistani market is not an incident in isolation as it was preceded by the entry of several other global mobile manufacturers in the country.
Samsung, in partnership with the Luckygroup, entered the Pakistani mobile sector and launched its first locally manufactured mobile phone in January 2022. RealMe, a Chinese smartphone company, also started producing mobile phones locally at their unit in Lahore.
I would like to congratulate RealMe mobiles which has started producing mobiles locally at their unit in Lahore. This has not only created employment but it has also decreased the cost of their locally made smartphones. 1/2
— Abdul Razak Dawood (@razak_dawood) February 28, 2022
Read More: Pakistan re-elected to International Telecommunication Union (ITU)
The influx of mobile manufacturing companies is a direct consequence of Prime Minister Imran Khan’s “Make in Pakistan” policy which allowed local manufacturers to import phones in Semi Knocked Down (SKD) form than as Completely Built Units (CBU). The telecom sector has since witnessed a tectonic shift. Export of mobile phones have picked up, and for the first time, Pakistan is looking to be a net exporter of mobile phones than a net importer.
According to a report by PTA, Pakistan imported 28.0 million mobiles in 2019 alone. Now, the country produces around 25 million phones as compared to the import, which only peaked at 9.74 million units from January 2021 till October.
Pakistan also sent its first-ever consignment of 4G mobiles to the United Arab Emirates in August 2021 as a direct result of this “Make in Pakistan” Policy. The exports of mobiles is contributing to the foreign exchange earnings and employment generation. As per the latest report by the Pakistan Telecommunication Authority, local mobile manufacturers have in just seven months created 10,000 jobs.
Read More: Telecom giant pledges Rs 1.2bn to fight against Covid-19
Pakistan’s mobile sector is growing and developing at a robust pace. Provided that Pakistan maintains this conducive environment for smartphone manufacturing, more companies are likely to follow suit and enter the Pakistani market as manufacturers