The future of around 20,000 employees is at risk as almost all of the country’s 30 mobile phone assembly units, including three foreign brands, have been forced to shut down due to a shortage of raw materials caused by the government’s stringent policies toward the import of materials from foreign countries, amid a severe economic crisis.
The situation resulted in most companies furloughing their employees, after paying them half of their April salaries in advance, with the promise of calling them back as soon as production resumes. A mobile phone manufacturer expressed their sadness while speaking to Dawn, stating that it is unfortunate that employees had to be sent home during the holy month of Ramadan.
According to reports, some companies, including foreign players, have paid advance salaries to employees and told them not to come to work until operations resume. The dire situation came during the month of Ramadan, adding to the plight of the workers.
A mobile phone manufacturer expressed their sadness to Dawn, stating that it is unfortunate that employees had to be sent home during the holy month of Ramadan.
“My family has three mobile production units, and all are closed,” he said while putting the blame on “incompetent and strange policies” of the finance ministry.
Officials of the Pakistan Mobile Phone Manufacturers Association approached the IT ministry, updating that local mobile supply has almost come to a standstill.
Association’s chairman, Haji Abdul Rehman, said in the letter that the current situation is not only troubling for the mobile phone industry but also for consumers who have to pay significantly higher prices for locally manufactured mobile sets.
Mr. Rehman expressed concern that the price of low-cost imported phones and locally assembled units was becoming comparable, which could eventually lead to a decline in sales of local sets. He shared these views with Dawn.
“This is a serious blow to Pakistan’s reputation as a mobile manufacturer,” he said.
Manufacturers lamented the federal government’s import policies as no material has been imported from China and other countries for over three months. Raw materials worth $170 million need to be imported for smooth operations, but the government is not allowing the opening of credit letters due to the dollar shortage.
Since April last year, the South Asian nation has been producing nearly 25 lac cell phones each month on average, with some companies even exporting cell phones. However, the current situation has put the industry’s future in jeopardy.