Pakistan eyes exports as local smartphone manufacturing touches 7.6 million units in 2021

A shopkeeper plays with his mobile phone at a phone market in Rawalpindi, Pakistan, on July 4, 2017. (REUTERS/File)
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Updated 08 June 2021
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Pakistan eyes exports as local smartphone manufacturing touches 7.6 million units in 2021

  • Pakistan’s telecom regulator says country manufactured 12.6 million smartphones last year though local production mainly focused on 2G handsets
  • Manufacturers says Pakistan can export smartphones within six months if the promised export rebate is implemented

KARACHI: Cell phone manufacturing firms in Pakistan rolled out 7.6 million handsets in the first five months of the year, the country’s telecom authority has said, with top officials in manufacturing companies saying they were ready to export smartphones in the next six months.
Once the world’s seventh largest importer of mobile phones, Pakistan made local assembling of cellphones possible by implementing the Device Identification, Registration and Blocking System (DIRBS) in 2018. The system not only controlled the smuggling of mobile phones but also led to the local manufacturing of these gadgets.
According to statistics compiled by the Pakistan Telecommunications Authority (PTA), local manufacturing in 2020 stood at 12.6 million phones, including 10.42 million 2G devices and 2.22 million 3G and 4G sets.
“In the current year, about 5.34 million 2G and 2.23 million 3G/4G devices have been locally manufactured,” PTA, which keeps a record of cell phones produced in the country, said in response to an Arab News query. 
“In accordance with the Mobile Device Manufacturing Regulations issued by the PTA on 28th January 2021, a total of 19 companies who applied to the PTA for setting up mobile device manufacturing plants have been approved. A 10-year Mobile Device Manufacturing (MDM) Authorization has been granted by the PTA to these companies,” the telecom regulator added.
PTA said Pakistan’s total annual market size was estimated at 34 million handsets, adding that these included 20 million 2G and 14 million 3G/4G devices.
Pakistan has 85 percent tele-density with 183 million cellular subscribers. The country also has 98 million 3G/4G and 101 million broadband subscribers. 
To meet the growing market demand, 19 companies, mostly from China, have started operating in Pakistan. Other market players include Nokia, which is setting up its manufacturing unit in the country in collaboration with a local company.
“The MDM regulations allow both foreign companies as well as joint ventures between local and foreign companies to apply for manufacturing authorization,” the PTA said, adding: “The companies who have been issued authorization include both standalone foreign entities and joint venture companies who have partnered with a foreign brand to set up mobile manufacturing plants in Pakistan.” 
The prominent brands, according to the Pakistani telecom regulator, include Oppo, Realme, Vivo, Alcatel, Infinix, Techno and Nokia etc.
After the implementation of DIRBS, many foreign cell phone manufacturers felt the need for local production, say industrial players.
“It is a matter of survival,” Aamir Allawala, CEO of Tecno Pack Telecom, told Arab News. “In the coming days, all brands will have to ensure manufacturing in Pakistan. If anyone fails to do that, it will not be able to survive in the local market.”
Manufacturers say they are meeting about 60 percent demand of mobile phones through local production which is likely to increase to 70 percent by August this year. 
The companies are also optimistic to start exporting smartphones within a span of six months.
“The government had announced a three percent export rebate in its policy, but it has still not been implemented,” Allawala said, adding: “We expect that this will be implemented in the upcoming budget since export will become viable once the rebate is introduced.”
“With requisite incentives, Pakistan will start exporting mobile phones within six months,” he said. “We have a labor cost advantage since assembling rate is significantly lower in Pakistan. In China, for instance, the labor cost stands at $700 while in Pakistan it is around $125.” 
The Mobile Device Manufacturing Policy 2020 also predicts that in the next two to three years, local production can reach up to 80 percent of Pakistan’s total handset market demand if attractive tariff plans are offered to the industry. 
“This can result in the creation of at least 40,000 high-skill direct jobs in electronics and information technology industry and up to 300,000 indirect jobs in ancillary sectors,” the policy document reads. “A typical smartphone constitutes more than 60 parts, and its assembly requires manpower, where Pakistan can benefit from its low labor cost.”
Cellphone manufacturers in the local market say Pakistan has acquired the capability to produce all types of phones and is ready to manufacture 5G handsets when the network is rolled out by the end of the next year. 
“The 5G network is not available in Pakistan at the moment, so manufacturing of 5G mobiles is out of the question for now,” Allawala said. “But when the network becomes available, the manufacturing will also start.”
Local traders say Pakistan’s domestic market was inundated with imported smartphones a few years ago, though they were now being replaced by locally assembled devices.
“A majority of phones in the market are now coming from local assembling plants,” Muhammad Rizwan Irfan, president of the Karachi Electronic Dealers’ Association, told Arab News, adding: “The quality of local mobile phones is gradually improving, but they still need to focus on after-sales service.”
According to dealers and manufacturers, the price gap between locally assembled and imported phones is somewhere between 12 and 13 percent.
Asked about the manufacturing prospects of iPhone, Samsung, Huawei and other major brands in Pakistan, the PTA responded by pointing at the country’s overall market potential. 
“There is a huge appetite for the use of mobile devices locally and the government hopes it can be fulfilled through local manufacturing,” it said.


Pakistan PM’s recent Saudi visit ‘most successful in decades’ — information minister

Updated 21 min 19 sec ago
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Pakistan PM’s recent Saudi visit ‘most successful in decades’ — information minister

  • Shehbaz Sharif was in Saudi Arabia from April 27-30 where he met crown prince, several top Saudi ministers
  • “High-powered” delegation of Saudi businessmen due in Pakistan in “few days” to discuss private sector investments 

ISLAMABAD: Pakistani Information Minister Attaullah Tarar said on Friday Prime Minister Shehbaz Sharif’s recent visit to Saudi Arabia was the most successful tour to the Kingdom in decades by a Pakistani leader, with the premier holding at least twelve meetings, including with the crown prince.

Sharif was in Riyadh from Apr. 27-30 to attend a special two-day meeting of the World Economic Forum on global collaboration, growth and energy. On the sidelines of the WEF conference, Sharif met and discussed bilateral investment and economic partnerships with Crown Prince Mohammed bin Salman and various top officials from the Kingdom. 

This was Sharif’s second meeting with the crown prince in a month. Before that he also met him when he last traveled to the Kindom on April 6-8.

“Such a successful tour of Saudi Arabia has not been seen in decades,” Tarar told a press briefing on Friday, speaking about Sharif’s recent trip to Riyadh for the WEF special meeting. “With Saudi ministers, the process of meetings went on for two days.”

Among those Sharif met were the Saudi ministers of finance, industries, investment, energy, climate and economy and planning, the adviser of the Saudi-Pakistan Supreme Coordination Council and the presidents of the Saudi central bank and Islamic Development Bank.

“PM had twelve meetings in two days which has not happened in history,” Tarar said. “And in the meetings every minister came and told us that it was the order of Crown Prince Mohammed bin Salman that they had to do efforts for Pakistan and cooperate with Pakistan and we have come to tell you we will do whatever we can for investments in Pakistan.”

Tarar said a “high-powered” delegation of Saudi business people and heads of major Saudi companies would be in Islamabad in the “next few days.” 

“Delegation is coming to islamabad and we have planned a big program for investment in the private sector,” the information minister added. 

Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian country.

Both Pakistan and Saudi Arabia have been closely working to increase bilateral trade and investment deals in recent weeks, and the Kingdom recently reaffirmed its commitment to expedite an investment package worth $5 billion.

Cash-strapped Pakistan desperately needs to shore up its foreign reserves and signal to the International Monetary Fund (IMF) that it can continue to meet requirements for foreign financing which has been a key demand in previous bailout packages. 

Saudi Arabia has often come to Pakistan’s aid in the past, regularly providing it oil on deferred payments and offering direct financial support to help stabilize its economy and shore up forex reserves.


PIA operations to Dubai, Sharjah ‘severely affected’ due to UAE rains

Updated 51 min ago
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PIA operations to Dubai, Sharjah ‘severely affected’ due to UAE rains

  • Extreme weather in UAE expected to continue until Friday, authorities have issued safety advisories for residents
  • Latest rains come two weeks after Dubai was hit by unprecedented storms that paralyzed the emirate for days

KARACHI: Pakistan’s national carrier PIA said on Thursday its operations to Dubai and Sharjah had been “severely affected” by a latest spell of heavy rains in the UAE and would remain suspended until further notice.

UAE residents woke up to heavy rain, thunderstorms, and strong winds on Thursday morning, as predicted by the UAE’s National Center of Meteorology (NCM) on Wednesday, May 1. The extreme weather is expected to continue until Friday, May 3, and authorities have issued safety adviseries for residents.

The latest rains come two weeks after Dubai was hit by unprecedented storms that paralyzed the emirate for days.

“Air operations to Dubai and Sharjah are severely affected due to heavy rains in UAE,” PIA said in a statement. “Air operations of other airlines including PIA will remain suspended for the time being.”

The airline said passengers of affected flights should contact PIA call center 786 786 111 for their flight information and alternative arrangements.

Last month, Dubai had to endure the towering task of clearing its water clogged roads and drying out flooded homes after a record storm saw a year’s rainfall in a day. Dubai International Airport, a major travel hub, also struggled for days to clear a backlog of flights and many roads were still flooded in the aftermath of the deluge.

The rains were the heaviest experienced by the United Arab Emirates in the 75 years that records have been kept. They brought much of the country to a standstill and caused significant damage, flooding trapped residents in traffic, offices and homes and overrunning malls and roads. 
 


In scenic Abbottabad, an old church tells a tale of religious unity, colonial heritage

Updated 59 min 38 sec ago
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In scenic Abbottabad, an old church tells a tale of religious unity, colonial heritage

  • St. Luke’s Church was built in 1864 on land donated by Queen Victoria, empress of India
  • Can seat up to 150 worshippers, expanding into outdoor area to host larger crowds

ABBOTTABAD: Located in Abbottabad, a picturesque city set against the mountainous terrain of Pakistan’s northwestern Khyber Pakhtunkhwa province, the 160-year-old St. Luke’s Church has a tale to tell of religious unity and the region’s colonial history. 

Built in 1864 during British rule, the Anglican-Protestant church was established to serve British officials serving in the Indian subcontinent. Construction of St. Luke’s commenced in 1854-55, with initial delays due to slow fund-raising and then a brief interruption due to the Indian Rebellion of 1857. It was completed and then consecrated by the Bishop of Calcutta in 1864. 

Despite disruptions during the partition of British India in 1947 and the birth of Pakistan, the church has continued to host mass and retained many of its original architectural elements.

“During its construction, the church’s exterior was built with stones that were cut and laid by hand,” Rev. Rafiq Javed, a priest at the church appointed by the Diocese of Peshawar, told Arab News this week, explaining the history of St. Luke’s Church.

“The inner part [of the church] is built using mud, lentils, jute, sawdust, and paste made of eggs. The eggs were provided by the local people.”

St. Luke’s Church retains many elements from the time of its construction, such as stained-glass windows and old locks and their gigantic keys. A pipe organ stands in the church foyer.

Javed said the musical instrument had become unusable due to water damage some 50 years ago but its sound was once well known across the Abbottabad valley.

The church walls display plaques dating back to 1865 and serving as a memory of fallen British soldiers. One also comes across a metallic device permanently fixed on one of the stairs at the church’s entrance that was used by British troops to remove mud from their shoes before going to the main hall for worship.

The local Christian community says the church property was donated by Queen Victoria, empress of India, and one of its gates was named after her. The church property comprises the vicar’s home as well as staff quarters for caretakers of the building.

The church seats up to 150 worshippers, expanding into the outdoor area to accommodate larger crowds during special occasions such as Christmas and Easter.

Christianity, the third largest religion in Muslim-majority Pakistan, is followed by 1.27 percent of the population, according to the 2017 Census. The community has roughly equal proportions of Catholics and Protestants, with a small number of Eastern Orthodox and Oriental Orthodox Christians as well. There are around 4,000 Christians in Abbottabad, according to local estimates.

Javed the priest said the building of the church was a community effort:

“At the time, the people who lived here included Hindus and our Muslim brothers as well and they also lent a hand in building this church. The eggs [to make paste] were provided by the local Hindu and Muslim communities.”


Google to establish fifty AI-equipped smart schools in Pakistani capital

Updated 02 May 2024
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Google to establish fifty AI-equipped smart schools in Pakistani capital

  • Smart schools incorporate technology and innovation in teaching and learning processes to improve quality of education
  • Smart schools in Islamabad will be equipped with 30,000 Google for Education IDs with AI features and digital tools 

ISLAMABAD: US tech giant Google is all set to establish 50 smart schools in Pakistan’s federal capital offering AI features and a suite of digital tools for “enhanced collaboration and productivity,” Pakistani state media reported this week. 

A smart school incorporates technology and innovation in its teaching and learning processes to improve the quality of education. Smart schools use various technologies such as interactive whiteboards, online learning platforms, artificial intelligence and virtual reality to enhance the learning experience of students. 

Experts say smart schools lead to improved student engagement and motivation, personalized learning, access to a wider range of resources, and enhanced communication between teachers, students, and parents. Smart schools also promote collaborative learning, critical thinking, and problem-solving skills among students.

A Google for Education team and its local partner Tech Valley met this week with the Secretary of the Ministry of Federal Education and Professional Training to present its proposals for Pakistan’s education sector, including setting up smart schools. 

“50 Smart schools in Islamabad will be equipped with 30,000 Google for Education IDs which includes features, powered by AI, like practice sets and a suite of digital tools for enhanced collaboration and productivity,” the APP wire agency reported. 

“Discussions extended to several upcoming initiatives, including teacher workshops on Google for Education tools, the establishment of a public Google Reference School, the training of 2,000 youths in job-ready skills through Google Career Certificates, and the potential collaboration on hosting an Edutech event with the Ministry of Federal Education in Pakistan.”

According to the “Global Education 2020” report issued by UNESCO, there has been a significant increase in the use of technology in education worldwide. The report indicated that 90 percent of the world’s countries have launched initiatives to integrate technology into education, and 80 percent of students in advanced countries use technology in education.

As per a report by “Holistics,” a business intelligence and data analytics platform, Smart School technology has also been adopted by many countries in Asia, including Singapore, China, and South Korea, and has proven to be effective in improving the quality of education and learning outcomes.

The size of the Smart School market is expected to reach $73.8 billion by 2025 compared to a market size of $43.6 billion in 2018, marketing research company “Markets and Markets” said in a recent report. 


Pakistan inflation eases to 22-month low at 17.3% in April amid monetary tightening

Updated 02 May 2024
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Pakistan inflation eases to 22-month low at 17.3% in April amid monetary tightening

  • Pakistan beset by inflation above 20% since May 2022, registering high of 38% in May 2023 due to high food, energy costs
  • Pakistan is currently navigating strict reforms as part of an International Monetary Fund bailout program

KARACHI: Pakistan’s inflation eased off to 17.3%, the lowest since May 2022, on a year-on-year basis in April 2024 from 20.7% recorded in March 2024 and 36.4% in April 2023, official data issued on Thursday said.

Pakistan has been beset by inflation above 20% since May 2022, registering a high of 38 percent in May 2023 main due to high food and energy costs. 

Pakistan’s central bank, which has kept the interest rate steady at 22% since June last year amid tight monetary tightening, had forecasted that ” inflation will continue to remain on downward trajectory further moderation.”

“Besides the coordinated tight monetary and fiscal policy response, other factors that have led to this favorable outcome include lower global commodity prices, improved food supplies and high base effect,” the central bank said in its monetary policy statement issued on Monday.

On a month-on-month basis, inflation decreased to 0.4 percent in April 2024 as compared to an increase of 1.7% in the previous month and a hike of 2.4% in April 2023, according to the Pakistan Bureau of Statistics (PBS) . 

In April on an annual basis the prices of onions increased by 156.16 percent, tomatoes 126.67 percent, chicken 33.62 percent and meat 22.18 percent. In the non-food category, gas charges surged by 318.74 percent, electricity charges 71.12 percent, accommodation services 31.50 percent, transport services 26.70 percent, cotton cloth 23.00 percent, drugs and medicines 22.78%, and footwears 21.38%.

Urban core inflation measured by non-food non-energy items increased to 13.1 percent on an annual basis in April 2024 as compared to an increase of 12.8 percent in the previous month and 19.5 percent in April 2023.

Rural core inflation measured by non-food non-energy items increased to 19.3 percent on a year-on-year basis in April 2024 as compared to an increase of 20 percent in the previous month and 24.9 percent in April 2023.