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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: ... |
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".
Husain Haqqani
@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.
Chromebook manufacturing in Pakistan
AI Overview
Yes, Pakistan is launching its first Chromebook manufacturing assembly line in Haripur, Khyber Pakhtunkhwa (KP), through a collaboration between Tech Valley Pakistan, NRTC, Allied Corporation, and Google for Education. The facility, which began with a goal of producing 500,000 units annually and aims to scale up, is a significant milestone for local industry and aims to provide students with affordable, "Made in Pakistan" Chromebooks.
Key Details:
Location:
The assembly line is located in Haripur, Khyber Pakhtunkhwa (KP).
Partners:
The initiative involves Tech Valley Pakistan, National Radio & Telecommunication Corporation (NRTC), Allied Corporation, and Google for Education.
Production Capacity:
The facility initially aims to produce 500,000 units annually, with plans to scale up to 1 million units per year.
Goals:
The project seeks to make Chromebooks more accessible and affordable for Pakistani students, boost local tech manufacturing, create jobs, and support digital transformation in the country.
Significance:
This marks the first time Chromebooks will be "Made in Pakistan," representing a unique blend of local production and education.
Dar hails ‘historic milestone’ as Pakistan’s first Google Chromebook assembly line launched - Business - DAWN.COM
https://x.com/foreignofficepk/status/1985644681581998215?s=61
https://www.dawn.com/news/1953100
Deputy Prime Minister Ishaq Dar on Tuesday launched Pakistan’s first Google Chromebook assembly line and hailed it as a “historic milestone” that would make digital tools more accessible.
“Today marks a historic milestone in that journey as we celebrate the invaluable partnership between Google and Pakistan,” Dar said while addressing a ceremony marking the launch in Islamabad.
Terming the move a “defining moment for our country’s digital transformation”, the deputy PM said localising the assembly of Chromebooks would make access to digital tools more affordable and inclusive, particularly in the education sector.
Dar, who is also the foreign minister, said the assembly line’s establishment held great economic significance as it laid the “foundation for jobs, supply chain, development and future tech exports”.
Dar said that under a strategic memorandum of understanding, Google and Pakistan would “collaborate to provide skills training for 100,000 developers nationwide while also developing targeted programmes for the gaming and startup industries”.
“Together, we will also advance localised AI-powered solutions, such as Android services for public safety and offer 100,000 Google Careers certificates to equip Pakistanis with world-class digital training and globally recognised credentials,” the deputy premier said.
“Google’s decision to open its local office in Pakistan is not just symbolic; it is a moment for national pride and a powerful endorsement of our country’s digital potential,” Dar stressed.
He added that it represented a “strategic milestone with far-reaching implications for the digital economy, the innovation ecosystem and global investor confidence”.
The deputy PM noted that Google’s local presence would bring it “closer to Pakistan’s developers, startups and entrepreneurs, enabling direct collaboration, capacity building, and great access to global platforms”.
During his address, Dar appreciated Defence Production Minister Muhammad Raza Hayat and Special Investment Facilitation Council (SIFC) National Coordinator Lt Gen Sarfraz Ahmad for their contribution in “all such efforts”.
Meanwhile, in her remarks at the launch IT Minister Shaza Fatima Khawaja termed the launch of Chromebook’s assembly line as a transformative step, Radio Pakistan reported.
Khawaja highlighted that the move brought together technology, manufacturing and education. She expressed the government’s commitment to continuing Pakistan’s digital journey at a fast pace.
In June last year, Google for Education’s country partner Tech Valley, National Radio and Telecommunication Corporation (NRTC), and Australia-based manufacturer Allied announced their intent to establish a Google Chromebook assembly line in Khyber Pakhtunkhwa’s Haripur.
Yesterday, a delegation of Tech Valley led by Kevin Kalis called on Punjab Chief Minister Maryam Nawaz in Lahore and promised support to establish a Google Chromebook manufacturing factory in Punjab to boost technology-driven education and local IT infrastructure.
Amir Husain
@amirhusain_tx
MANUFACTURING IN PAKISTAN: THE CELL PHONE EXAMPLE
There's a peculiar intellectual disease that afflicts discourse about Pakistan. No matter what progress is made, someone will argue it doesn't count. The goalposts shift perpetually. I think part of the affliction is that some of this complaining coterie think it is "cool" to always find fault - because if nothing is ever good enough for them, they must be something special? Yeah, right. And the other part of this has to do with the well-studied psychological condition of learned helplessness... but more on that another day. Let's come back to cell phones.
Pakistan produced 31.4 million mobile phones in 2024, a 47% year-on-year increase. The country now meets 94% of domestic demand through local manufacturing. In 2016, that number was 1%. This is not a trivial achievement.
Yet the immediate response from the purity police: "But what percentage of local value addition?" Let me address this directly, because this question reveals more about the questioner's agenda than about manufacturing economics.
Current estimates put Pakistan's local value addition in mobile phone production at ~20% (per Profit Magazine). Critics say this is "just assembly." Let me ask you: what percentage of value addition does the iPhone have in the United States? Apple's "Designed in California" iPhone contains approximately 0% US-manufactured components. The screens come from Korea and Japan. The chips from Taiwan. Assembly in China, increasingly India and Vietnam. By the purity test applied to Pakistan, America doesn't "produce" iPhones.
Germany "produces" Mercedes-Benz and BMW vehicles. But their supply chains span continents. Transmissions from Eastern Europe. Electronics from Asia. Software from global teams. Is Germany a "real" manufacturer?
The answer, obviously, is yes. Because manufacturing ecosystems don't work the way armchair critics imagine.
Here's something the "low value addition" critics never consider: value addition is measured in dollar terms. A Ford autoworker in Michigan now earns $36-40/hour in base wages, rising to over $40/hour by 2028 under the new UAW contract. With overtime and benefits, many approach $80/hour total compensation. A Pakistani mobile phone assembly worker earns a fraction of that. Does this mean the Pakistani worker's labor contributes less to the manufacturing process? Of course not. They perform the same quality control, the same precision assembly, the same testing procedures.
If you're measuring "value addition" in dollars, you're measuring wage DIFFERENTIALS between countries, not actual manufacturing contribution. By this logic, Vietnam and Bangladesh aren't "real" manufacturers either. Neither was China in 2005. Neither was Korea in 1970.
The entire development trajectory of every successful manufacturing economy (Korea, Taiwan, China, Vietnam) began with "low value addition" assembly. That's how this works.
Let me walk you through the manufacturing value chain and let's dive into what mobile phone "value addition" actually looks like, from bottom to top:
Level 1: SKD/CKD Assembly
a. Packaging, printing materials
b. Final assembly and integration
c. Quality testing and certification
Level 2: Large Components
a. Plastic casings
b. Batteries
c. Chargers
d. Cables
e. Headphones/earbuds
Level 3: Electronics Assembly
a. PCB stuffing and SMD placement
b. PCB design and layout
Level 4: Component Manufacturin
a. Non-VLSI component production
b. Display modules
Level 5: Advanced Semiconductor
a. VLSI component manufacturing
b. Chip design (fabless)
c. Foundry fabrication
Pakistan is currently at Levels 1-2, with growing capabilities in Level 3 and emerging work at Level 5. Every country that ever industrialized started at Level 1. Every single one.
Amir Husain
@amirhusain_tx
MANUFACTURING IN PAKISTAN: THE CELL PHONE EXAMPLE
The industry created 60,000 direct jobs per Profit Magazine. The Pakistan Mobile Phone Manufacturers Association puts total employment (direct + indirect) at 40,000+ jobs in 2024, but this undercounts distribution, retail, and service networks. Eight dedicated training centers have been established, graduating 5,000+ technical staff annually. Twelve thousand workers have been trained in advanced manufacturing processes.
Major brands assembling in Pakistan: Samsung, Xiaomi, Vivo, Oppo, Realme, Infinix, Tecno, Itel, Nokia, and more than a dozen local brands.
The industry reduced Pakistan's mobile phone import bill by $1.2 billion in 2024, a 35% decrease from the previous year, while contributing PKR 15 billion in tax revenue.
The government's Mobile Device Manufacturing Policy explicitly outlines a localization roadmap. Current focus areas:
Chargers (already localized)
Batteries (in progress)
Cables and accessories (in progress)
Packaging (fully localized)
Plastic casings and parts (in progress)
Next phases target PCB assembly, display modules, and eventually higher-level component manufacturing.
Here's another thing nitpickers miss entirely: the capabilities for higher-value manufacturing exist in Pakistan. They're just deployed in different sectors. For example, Karachi-based firm Ronin (which I've covered in my Made in Pakistan thread series) has established Pakistan's first smart wearables and tech accessories manufacturing and assembly industry. They're producing earbuds, smartwatches, headphones, neckbands, and power banks domestically, including acoustic design and plastics manufacturing. Not importing finished goods. Manufacturing them.
The National Institute of Electronics (NIE) operates SMT production lines with component placement capability of 30,000 components per hour, the same surface mount technology used globally for electronics assembly.
PCB design and stuffing: Multiple Pakistani firms offer PCB layout, SMD placement, and electronics assembly services to international clients.
And at the frontier there is RISC-V chip design.
In 2022, undergraduate researchers at MERL (Micro Electronics Research Lab) at UIT Karachi designed and taped out Pakistan's first RISC-V based System-on-Chip. The President of Pakistan inaugurated the chips, "Ghazi" and "Ibtida," fabricated on 130nm SkyWater process design kit through Google's free tapeout program.
Since then, MERL students have completed 9 tapeouts. All designed by undergraduate students.
Aql Tech Solutions in Islamabad is a RISC-V processor IP company that grew from 5 engineers to 40+ in under two years. They're developing RISC-V-based processors from high-end 64-bit cores to microcontrollers, working with Silicon Valley startups.
IEEE Spectrum noted in 2021 that Pakistan, alongside India, has "embraced RISC-V as their national instruction set architecture for homegrown chip development."
Let me be clear: Pakistan has active teams doing chip design work. Not chip fabrication, as no one except TSMC, Samsung, increasingly SMIC and Huawei, and Intel can do leading-edge fab. But chip design, which is where much of the intellectual value resides. This is Level 5 capability. It DOES exist in Pakistan.
https://x.com/amirhusain_tx/status/2016694941993590808?s=20
Amir Husain
@amirhusain_tx
MANUFACTURING IN PAKISTAN: THE CELL PHONE EXAMPLE
The question is not whether Pakistan CAN do these things. Pakistan demonstrably can. The question is whether the ecosystem matures fast enough to integrate these capabilities into commercial manufacturing.
So when someone asks "what percentage of local value addition makes something truly 'produced' locally?" ask them to name a number. Then show them which "manufacturing nations" fail their test. The truth is, the question itself is designed to ensure Pakistan can never win. It's intellectual gerrymandering. Set the standard at whatever Pakistan hasn't achieved yet, discount labor arbitrage, discount or ignore benefits gained, then move it again when they get there. Meanwhile, people that actually understand the business do appreciate what Pakistan has accomplished. It includes at least the following:
1. A near-total transformation of a major consumer goods sector from imports to domestic production in under a decade
2. Tens of thousands of skilled jobs created
3. Billions in foreign exchange saved
4. An industrial ecosystem taking root and growing
5. Human capital developing at scale
6. Electronics export potential emerging
Every successful manufacturing nation started exactly where Pakistan is now. The critics can keep moving goalposts. The factories keep running. The workers keep getting paid. The capability keeps building.
https://x.com/amirhusain_tx/status/2016694941993590808?s=
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