Mobile technology giant Xiaomi’s opened its first device manufacturing facility in Pakitan in what is being seen as a promising step to tap the growing market of over 200 million population.
Xiaomi, one of the largest smartphone companies in the world, has begun production work in collaboration with Select Technologies (Pvt) Limited in Lahore.
Select Technologies, a fully owned subsidiary of Air Link, said, the production facility will boost the country’s ‘Make in Pakistan’ vision.
A company statement said the production of smartphones in Pakistan will have a huge impact on the national economy resulting in the export of locally produced Xiaomi mobile phones.
Energy Minister Hammad Azhar says the manufacturing plant will fetch a $500 million investment.
Currently, Pakistan imports smartphones worth hundreds of millions of dollars to meet the growing needs of its population.
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 at that time 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.
Last year in November, Air Link announced that it would be partnering with Xiaomi, which 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 says it is 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 helped to assemble in the country and subsequent ability to export. It said that this policy was the reason for them to enter the manufacturing business.
The policy has enabled assemblers to import semi-knocked down units and assemble them in Pakistan paying negligible duties and taxes. Previously, imported smartphones were taxed at around 20 to 25 percent.
