Pakistan: The Next Electronics Manufacturing Hub?

[Riaz Haq]

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. 

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.

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. 

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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[Riaz Haq]

Why Pakistan is your next Technology Hub?

https://zigron.com/2024/05/24/why-pakistan-is-your-next-technology-...

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.

[Riaz Haq]

Ronin established the first smart wearables and tech accessories industry! - DAWN.COM

https://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.

[Riaz Haq]

Local mobile phone manufacturing rises 28pc MoM in December

https://www.thenews.com.pk/print/1280447-local-mobile-phone-manufac...

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.

[Riaz Haq]

As US-China trade war escalates, could Pakistan be Beijing's EV loophole? - CSMonitor.com


https://www.csmonitor.com/World/Asia-South-Central/2025/0214/China-...


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.