Pakistan expects local manufacturing of big cell phone brands after policy change

A shopkeeper repairs a mobile phone at his shop after the government eased the nationwide lockdown imposed as a preventive measure against the COVID-19 coronavirus, in Rawalpindi on May 11, 2020. (AFP)
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Updated 26 May 2020
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Pakistan expects local manufacturing of big cell phone brands after policy change

  • Arrival of high-end brands will give local industry opportunity to become part of global value chain
  • Local manufacturing of handsets will create more employment opportunities, reduce outflow of foreign exchange

KARACHI: Pakistan expects local manufacturing of major cell phone brands following the approval of the first Mobile Device Manufacturing Policy, officials and manufacturers said on Monday.

“Some big brands got in touch with us when they discovered that we were working on the policy. Hopefully, one of them will come to Pakistan within a year,” Pervaiz Iftikhar, who is part of Prime Minister’s Taskforce on IT and Telecom, told Arab News.

“Ultimately big brands will come to Pakistan, though it will not happen immediately since high-profile companies normally take time to make such decisions,” he said while declining to name the brands that have shown interest in manufacturing in Pakistan.

Global brands like Nokia representatives in Pakistan say they are monitoring the industrial situation and government regulations closely.

“We have prepared a proposal in the context of this development. However, global companies do not take decisions very quickly, especially when they involve setting up operations somewhere,” Arif Shafique, HMD Global Country Head for Pakistan and Afghanistan, told Arab News.

Pakistan approved the mobile manufacturing policy to encourage local production of handsets on Thursday, hoping it would also have a positive impact on allied industries.

The new policy is designed to attract high-end brands that will help the local industry become part of the global value chain.

The policy seeks to set up research and development centers and create an elaborate ecosystem for software applications. Various tax incentives have been given to manufacturers for local production.

With a population of 220 million people, Pakistan’s telecom sector offers attractive investment opportunities since it boasts of 165 million mobile phone subscribers with 76 million 3G-4G users, according to the Pakistan Telecommunication Authority (PTA).

The authority has already issued licenses to some 29 mobile manufacturers for the production of handsets.

“Out of 29 licensees, 18 have started manufacturing and are mainly assembling 2G mobile sets,” Aamir Allawala, CEO of Transsion Tecno, a joint venture between Transsion Holdings China and Tecno Pack Pakistan, told Arab News.

The joint venture company is the first to start manufacturing 3G and 4G smartphones in Pakistan. It produces Infinix, Tecno and Itel brands in its Karachi facility and has sold 500,000 units since February 2020.

“The country produces around 12 million handsets annually against the market size of 40 million units. About 28 million sets are also imported annually,” Allawala said.

“Local production figures will more than double in the coming days if the expected investments are made,” Pervaiz Iftikhar said.

The country meets a chunk of its mobile phone demand by importing handsets which adds to its deficit. During the last fiscal year, Pakistan imported mobile phones worth $755.5 million, but the import of these devices increased by 63 percent to $1 billion during July-April period of the current financial year.

“Previously, duties and tariffs did not make local manufacturing a viable option,” Allawala said. “That made the import of handsets more feasible. However, this is likely to change with the introduction of the new policy.”

Manufacturers say this labor-intensive industry has a potential to create 200,000 jobs, and the 49 percent localization of parts within the next three years is likely to help the country export mobile phones.

“It will also reduce the burden on the country’s forex reserves,” Allawala added.

However, some industry players emphasized the importance of keeping the policy consistent.

“It takes high investment to assemble smart phones. When such investments are made, governments take U-turns and implement new policies or impose new duties and taxes,” Imran Ghani, CEO of Tri-Angels Electronics that manufactures Hisense TV in Pakistan and intends to make smartphones, told Arab News.

Local manufacturing was of cellphones was encouraged after Pakistan implemented its Device Identification, Registration and Blocking System (DIRBS) in 2018 to control the smuggling of mobile phone devices through the registration of International Mobile Equipment Identity (IMEI). The move not only resulted in the growth of local manufacturing but also encouraged imports through legal channels.


Pakistan’s Usman Khan ruled out of second ODI against New Zealand

Updated 30 March 2025
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Pakistan’s Usman Khan ruled out of second ODI against New Zealand

  • The 29-year-old opening batter sustained a hamstring injury while fielding in the first match against New Zealand on Friday
  • New Zealand eased to a 73-run win over Pakistan after Mark Chapman struck a sublime century, Nathan Smith claimed four wickets

ISLAMABAD: Pakistan have ruled out opener Usman Khan from the second one-day international (ODI) against New Zealand owing to a hamstring injury, the Pakistan Cricket Board (PCB) said on Sunday.
The 29-year-old opening batter sustained the injury while fielding during his side’s first ODI against New Zealand at the Mclean Park in Napier on Friday.
“The MRI scan confirmed a Low-Grade tear, making Usman unavailable for second ODI scheduled on 2 April at Seddon Park in Hamilton,” the PCB said.
New Zealand eased to a 73-run win over Pakistan in the first ODI after Mark Chapman struck a sublime century and Nathan Smith claimed four wickets.
The recalled Babar Azam top-scored for Pakistan with 78 off 83 balls but it was his dismissal that started the rot.
Both teams feature numerous changes to those who played out a five-match T20 series, won 4-1 by New Zealand.


Pakistan’s decision to expel refugees has ‘shaken’ Afghan community, UNHCR official says

Updated 30 March 2025
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Pakistan’s decision to expel refugees has ‘shaken’ Afghan community, UNHCR official says

  • Islamabad has set a deadline of Mar. 31 for registered Afghan refugees to leave Pakistan
  • The UNHCR official calls on world to share responsibility, says ‘stability comes at a cost’

KARACHI: A top official of the United Nations High Commissioner for Refugees (UNHCR) in Pakistan on Sunday said Islamabad’s decision to expel refugees has “shaken” the Afghan community in the country, urging the international community to keep step up and share the responsibility.
Pakistan this month announced that that Afghan Citizen Card (ACC) holders must leave the country by March 31, which coincides with Eid Al-Fitr. According to UN data, Pakistan hosts more than 2.8 million Afghans, many of whom fled decades of war and instability in their home country. Around 1.3 million of them are formally registered as refugees and hold Proof of Registration (PoR) cards, which grant them legal protections.
Another 800,000 Afghans possess ACCs, a separate identity document issued by the Pakistani government that recognizes them as Afghan nationals without offering refugee status, according to the UNHCR. With the government now requiring ACC holders to leave by March 31, these 800,000 Afghans face the prospect of being forcibly returned to a country many have never even seen.
“For nearly five decades, millions of Afghans have come and gone from Pakistan, fleeing waves of violence since 1979 and returning home under mixed circumstances over the years. Some have chosen to repatriate voluntarily, while others have felt compelled to do so,” UNHCR representative in Pakistan Philippa Candler said on Sunday.
“Recent Government announcements about departure deadlines have again shaken the Afghan community in Pakistan.”
The move is part of a larger repatriation drive for foreign citizens that began in 2023, following a string of suicide attacks that Islamabad said involved a number of Afghan nationals. Over 800,000 Afghans have since been expelled from Pakistan.
In 2023, the Pakistani government said it was first focusing on expelling foreigners with no legal documentation and other categories like ACC holders would be included later.
Candler said it was “heartbreaking” to see how fearful these ACC-holders are of their forced return, adding that “their hopes and dreams have been shattered.”
She said Pakistan’s continued support for Afghan refugees, who have become woven into the fabric of Pakistan’s society, is “admirable” but undeniably a challenge for the host state.
“Healthcare, education, and other public services are often overburdened, and host communities are feeling the strain. Pakistan is stuck in a tough spot – balancing the needs of its own people, dealing with a growing security challenge, and shouldering the financial impact of hosting refugees,” she said.
“At the same time, the world expects Pakistan to keep delivering. The international community needs to keep stepping up and acknowledge that this stability comes at a cost, and that the responsibility must be shared.”
The situation requires a multifaceted approach, according to the UNHCR official. Pakistan and Afghanistan must work together to make sure that Afghan refugees can voluntarily and safely return home.
She called for a “sustainable return” of Afghan refugees, saying that many of those forced to return in 2023 were back in Pakistan again.
“Sustainable return means creating a peaceful and secure environment in Afghanistan, so refugees don’t have to fear persecution or discrimination when they go back. For Afghans who cannot return safely for the moment, efforts must be made in Pakistan to expand access to education, health care, and employment opportunities, while also granting them legal recognition and protection under international refugee law,” Candler said.
“The international community has a significant role to play. The responsibility on Pakistan should not be borne alone. Humanitarian aid needs to continue, not just to provide short-term relief but to support long-term development programs. Promises were made for the relocation of Afghans who entered the country since 2021. While many Afghans have left to third countries, thousands still remain in limbo in Pakistan. UNHCR is calling for their speedy departures, which means a durable solution and stability for the refugees.”


Middle class families head to Karachi’s Kagzi Bazar for ‘affordable’ shopping on eve of Eid

Updated 30 March 2025
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Middle class families head to Karachi’s Kagzi Bazar for ‘affordable’ shopping on eve of Eid

  • 50-year-old market is located in densely populated area of old city of Karachi 
  • Buyers and sellers both say prices are more affordable than at other markets

KARACHI: Amid Ramadan price hikes and low wage growth across households on the eve of Eid Al-Fitr, there is one safe haven for middle- and working-class shoppers in the Pakistani megacity of Karachi: Kagzi Bazar.

The at least 50-year-old market in the heart of old Karachi, one of the most densely populated areas in the city of over 20 million people, offers a wide range of goods including clothes, jewelry, footwear, bangles, hand bags and other accessories at affordable prices, buyers and sellers told Arab News ahead of the Eid Al-Fitr holiday.

The Pakistan government has announced Eid holidays from Monday, Mar. 31 to Wednesday, Apr. 2.

“It’s comfortable for us in terms of affordability. This market is within our budget, we can’t go to other markets,” Zainab Shafiq, a housewife and mother of two who has been shopping at Kagzi Bazar since she was a child, told Arab News.

“My entire family, including my in-laws as well as my own family, shop here,” she added as she browsed through glittery sandals and bangles at a roadside stall.

Pakistan was beset by inflation above 20 percent since May 2022, registering a high of 38 percent in May 2023, as it navigated reforms under an International Monetary Fund bailout program. While the annual inflation rate slowed to 1.5 percent this February, the lowest in nearly a decade, and the prices of goods are now rising more slowly, the cost of living has not become more affordable in the absence of wage growth for most households.

That is why many middle class and low-income families turn to Kagzi Bazar for Eid shopping over other markets like Tariq Road and Gulf Market in Karachi. 

“The prices here are quite reasonable compared to other markets, that’s why we shop here,” 9th grader Mehek Fatima, who was visiting the market with her mother, said.

“Malls have the same variety but the prices here are reasonable compared to them.”

Mohammad Haroon Abdullah, who has been running a garment shop in Kagzi Bazar for the last 25 years, said people visited the market from different parts of Karachi and even from outside the Sindh province because of cheaper rates. 

“The entire Balochistan, interior Sindh [provinces] come to shop here,” he said. “The entire Lyari [neighborhood], customers from Keamari, Saddar, New Karachi and so many other localities come to us. Even people who have shifted from this locality come from Soldier Bazar and Garden.”

Indeed, the low prices have been bringing loyal customers to Kagzi Bazar for decades. 

“He is more like my brother,” Shenila Abdul Ghaffar told Arab News, pointing toward the owner of a cosmetics shop.

“For almost 28 years, I have been coming to this shop and buying everything from here. My children, daughter-in-law, everyone shops here,” she added.

“At a time when inflation rate is high, it’s easier for us to adjust with our budget here.”


Shawwal crescent sighted, Pakistan to mark Eid Al-Fitr today

Updated 30 March 2025
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Shawwal crescent sighted, Pakistan to mark Eid Al-Fitr today

  • Eid Al-Fitr begins on the first day of the month of Shawwal in the Islamic lunar calendar
  • It is one of two major Muslim festivals that marks end of holy fasting month of Ramadan

ISLAMABAD: The crescent for the month of Shawwal was sighted in Pakistan on Sunday and consequently, Eid Al-Fitr will be celebrated on Monday, March 31, the Central Ruet-e-Hilal Committee announced.
The three-day Eid Al-Fitr festival starts on the first day of the month of Shawwal in the Islamic lunar calendar. The festival marks the end of the holy fasting month of Ramadan.
The Central Ruet-e-Hilal Committee, the country’s apex moon-sighting body, met in Islamabad under the chairmanship of Maulana Abdul Khabir Azad for the sighting of the Shawwal crescent.
“[We] received testimonies of the sighting of the Shawwal moon from various areas of Pakistan today, which include Lahore, Bahawalpur, Islamabad, Sheikhupura, Kasur and other areas,” Maulana Azad announced at a press conference.
“Hence, it was decided with consensus that the first of Shawwal will be on March 31, Monday.”
Pakistan’s government this week announced a three-day holiday from Mar. 31 till Apr. 2 on account of the Muslim festival of Eid Al-Fitr.
The Shawwal moon was sighted in Saudi Arabia on Saturday, marking the end of the month of Ramadan. Eid Al-Fitr is being celebrated in the Kingdom, United Arab Emirates and other Middle Eastern countries today.


Azerbaijan economy minister to visit Pakistan next week to finalize key investment deals

Updated 30 March 2025
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Azerbaijan economy minister to visit Pakistan next week to finalize key investment deals

  • Cash-strapped Pakistan is currently navigating a tricky path to recovery under a $7 billion International Monetary Fund bailout program
  • The South Asian country has been making efforts to generate revenue through increased trade and investment deals with friendly nations

ISLAMABAD: Azerbaijan Minister of the Economy Mikayil Jabbarov will visit Pakistan next week to finalize key investment agreements between the two countries, the Pakistan prime minister’s office said on Sunday.
The statement came after Pakistan PM Shehbaz Sharif’s telephonic conversation with Azerbaijan President Ilham Aliyev on the occasion of Eid Al-Fitr, in which he conveyed his greetings and warm wishes to the brotherly people of Azerbaijan.
The two leaders reaffirmed their resolve to further strengthen the deep-rooted fraternal ties between the two countries and build upon the Sharif’s visit to Baku last month, according to the Pakistan premier’s office.
“The two leaders agreed that the Minister of Economy of Azerbaijan would visit Islamabad in the first week of April to hold discussions with the Deputy Prime Minister/Foreign Minister and also pay a courtesy call on the Prime Minister,” Sharif’s office said.
“This visit would ensure finalization of the key investment agreements between both sides thus setting the stage for President Ilham Aliyev’s expected visit to Islamabad in the month of April.”
During his visit to Baku in Feb., Sharif had announced the two nations would sign deals in April to boost bilateral investments to $2 billion. Multiple agreements for cooperation in the trade, energy, tourism, education and other sectors were also signed during the visit.
The developments come as cash-strapped Pakistan navigates a tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program. The South Asian country has been making efforts to generate revenue through increased trade and investment deals with friendly nations and regional and international allies, focusing on export-led growth.
In September last year, Azerbaijan bought JF-17 Block III fighter jets from Pakistan, reportedly in a $1.6bn deal.
During President Aliyev’s visit to Pakistan last year, a joint committee was set up to materialize projects in trade, commerce, information technology, tourism, telecommunication, mineral resources and other sectors. Sharif said at the time the current trade volume of $100 million did not reflect the “true” trade potential between the two countries.