“Economic Crisis Threatens 40,000 Mobile Industry Jobs in Pakistan”

The mobile phone industry in Pakistan is facing the possibility of losing 40,000 jobs due to an economic crisis. Assemblers of mobile phones have been unable to secure enough letters of credit (LCs) to meet their raw material needs, leading to the closure of assembly lines and potential job losses.

According to the Federal Minister for IT and Telecommunication, Pakistan’s assembly plants are expected to produce 19.7 million smartphones and other smart devices in 2022, with an estimated value of around Rs. 9.7 billion. The CEO of Tecno Pack, Aamir Allawala, estimates that the domestic demand for mobile phones in the country is around 36 million per year, including 1.4 million smartphones.

However, the inability to obtain foreign currency has led to market disruption and a reduction in the number of employees at Tecno Pack from 2,750 to 1,000. Allawala believes that foreign direct investment could help Pakistan reduce its trade deficit and suggests that the country could attract more FDI by improving its political climate and consolidating its policies, as well as creating a separate legal system and tax system for foreign investors

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