Xiaomi to begin local production of mobile phones under the government’s Mobile Device Manufacturing Policy

Xiaomi, one of the largest smartphone companies globally, is launching a mobile phone production facility in Pakistan. The mobile company has scheduled an inauguration ceremony on the 4th of March to kick off production in Pakistan. According to reports, Xiaomi is establishing a facility in the country to generate a likely sales volume of 550 million.

Details of the Production Facility

President Pakistan Dr. Arif Alvi is expected to inaugurate the production facility near Lahore. Xiaomi will begin mobile production in Pakistan in collaboration with Select Technologies (Pvt) Limited, a wholly-owned subsidiary of Air Link. The Chinese tech giant is expected to generate a sales volume of 550 million annually in Pakistan in partnership with its local connection. Referring to the production facility, Xiaomi posted a statement on the Pakistan Stock Exchange which read:

This production facility is a step forward in the direction of PM’s vision of ‘Make in Pakistan’. It will have a massive impact on Pakistan’s economy, resulting in the export of locally produced Xiaomi mobile phones.

About Xiaomi

Xiaomi is a global technology giant with a current standing of 334 in the Fortune Global 500 companies. It became the second-largest mobile phone manufacturer last year, surpassing Apple, and is currently number one in Europe and many other major markets, including India. Xiaomi made a record 190.4 million smartphone shipments in 2021.

Air Link also interested in Pakistan

Air Link announced that it would be partnering with Xiaomi last year in November. According to sources, this partnership would add approximately $450 million annually in top-line revenue numbers. Air Link has also been manufacturing TCL, ITel, and Tecno cell phones in Pakistan. The company claims to be one of the largest distributors of mobile phones in Pakistan, with a nationwide network linked with over 1,000 wholesalers and 4,000 retailers.

Air Link has praised the government’s Mobile Device Manufacturing Policy, which has encouraged local assembling of devices and subsequent ability to export gadgets. The tech company said:

The policy is the reason we entered the manufacturing business. The policy enabled assemblers to import semi-knocked units and assemble them in Pakistan, paying negligible duties and taxes.

Meanwhile, the Adviser to Prime Minister for Commerce and Investment, Abdul Razak Dawood, informed that RealMe mobiles has started producing locally at their unit in Lahore. He took to Twitter to state:

I want to congratulate RealMe mobiles for starting local production of mobiles at their unit in Lahore. This has not only created employment but has also decreased the cost of their locally made smartphones. The new development aligns with MOC’s (Ministry of Commerce) Make-In-Pakistan policy of promoting industrialization and import substitution.

Chairman, Engineering Development Board (EDB), Almas Hyder, said:

Thirty companies have taken permission to set up mobile assembling plants. And out of the 30, 19 companies have already started assembling. We expect the remaining companies to start their operations at their respective plants soon.

The government’s Mobile Device Manufacturing Policy is inviting several tech companies to settle down in Pakistan. Only time will tell whether the step proves fruitful for the companies and the economy.

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