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.


Punjab to unveil new budget today, pledges ‘people-friendly’ spending amid economic pressures

Updated 50 min 20 sec ago
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Punjab to unveil new budget today, pledges ‘people-friendly’ spending amid economic pressures

  • Punjab, home to over half of Pakistan’s 240 million population, contributes roughly 60 percent to GDP
  • Punjab’s budget for fiscal year 2024–25 was about $19.6 billion, with development outlay of $3 billion

ISLAMABAD: Pakistan’s Punjab province, the country’s most populous and economically crucial region, will present its budget for the 2025–26 fiscal year today, Monday, with officials promising a “people-friendly” plan, Radio Pakistan reported. 

Punjab Finance Minister Mujtaba Shuja-ur-Rehman is scheduled to table the budget in the provincial assembly in Lahore after the cabinet’s formal approval.

Punjab’s budget is seen as politically significant for the ruling Pakistan Muslim League-Nawaz (PML-N) of Prime Minister Shehbaz Sharif, which faces tough economic and governance challenges nationwide.

“This budget reflects Chief Minister Maryam Nawaz Sharif’s vision to prioritize people’s welfare and accelerate development projects across the province,” Rehman was quoted as saying by state-run Radio Pakistan. 

Punjab, home to over half of Pakistan’s 240 million people, plays a dominant role in the national economy, contributing roughly 60 percent of the GDP. It also receives the largest share of federal funds under the National Finance Commission (NFC) Award. Last year, Punjab’s budget for FY2024–25 was about $19.6 billion, with a development outlay of $3 billion. 

Officials have said the upcoming budget will maintain a focus on infrastructure upgrades, agriculture support and social welfare schemes to help shield the population from rising prices.

Local media reports suggest the government could announce new initiatives in education, health care and urban transport, along with efforts to address power shortages in rural areas.


In parched Karachi, mosques give back to the earth by saving ablution water

Updated 16 June 2025
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In parched Karachi, mosques give back to the earth by saving ablution water

  • Project started at Jamia Uloom Islamia Banuri seminary has now spread to 20 city mosques 
  • From India to Indonesia, communities have long explored ways to reuse water from places of worship 

KARACHI: On a sweltering afternoon in Karachi’s Gulberg neighborhood earlier this month, rows of men lined up under shaded arcades at a seminary to perform wudu, the ritual ablution Muslims perform before prayers. 

In a city battered by chronic water scarcity, each drop of this cleansing water is precious but until last year, gallons of it flowed straight into Karachi’s aging sewer lines, lost forever.

Now, at over 20 mosques scattered across this sprawling megacity of more than 20 million people, this water has found a second purpose. It is being stored underground to help replenish the city’s shrinking aquifers, drop by precious drop. 

The unconventional fix is the brainchild of Dr. Syed Imran Ahmed, who heads the Panjwani Hisaar Water Institute at Karachi’s NED University. He convinced the administrators of Jamia Uloom Islamia Banuri, one of Pakistan’s biggest seminaries, to store ablution water in underground wells instead of letting it drain away.

And what started as a pilot at the Banuri mosque has since spread to more than 20 mosques citywide.

“A lot of people go to the mosque and use water there without any thinking. Now this water directly goes to wastewater, so it becomes part of wastewater,” Dr. Ahmed told Arab News.

“But what if you divert it to a tank or to a well in the mosque?”

Karachi is Pakistan’s economic engine but also one of its thirstiest cities. Official estimates show it needs about 1,200 million gallons per day but gets barely half that on average.

As residents bore deeper and deeper wells to tap the ground beneath them, they have left behind hollow pockets in the earth, literal sinkholes that are swallowing parts of the city.

A landmark study by Singapore’s Nanyang Technological University found Karachi ranks second in the world for urban land subsidence, just behind China’s Tianjin. Between 2014 and 2020 alone, parts of the city sank by as much as 15 centimeters due to excessive groundwater pumping.

“And that rate of sinking is higher than the sea level rise due to climate change. Now they are calling them bowl cities ... the city is like a bowl because different areas of it are sinking.” said Yasir Husain, founder of the Climate Action Center in Karachi.

The mosque project, he explained, addressed this destructive cycle in which countless homes had bore ever deeper into the earth for water.

“People have on every street two or three houses which have bores, and they suck water from the ground,” he said. “And they’ve gone deeper and deeper.”

Recharging wells, however small, could help restore the balance, Hussain added.

OTHER FAITHS, OTHER CITIES

The idea isn’t unique to Karachi. From India to Indonesia, communities have long explored ways to reuse water from places of worship.

In India’s Hyderabad, the centuries-old Charminar mosque installed a water recycling system in 2019 that filters ablution water for reuse in gardens. 

In Kuala Lumpur, Malaysia, a green mosque project uses treated wudu water for toilet flushing and irrigation.

In the Middle East, where water stress is even more acute, countries like the UAE have pioneered mosque greywater reuse for landscaping, transforming prayer halls into unexpected allies for urban water security.

At the Jamia Masjid Falah in the city’s Gulberg neighborhood, Abdullah Malik, a mosque committee member, said he could see the water recycling results firsthand.

“It’s essential that any sweet water used should be saved instead of being wasted into the gutter lines,” he said, estimating that 700–800 people performed ablution at his mosque daily.

Even saving three liters per person could mean thousands of liters recharging the earth every day, Malik added, a small, steady buffer against Karachi’s mounting water emergency.

Indeed, encouraged by the community response, Dr. Ahmed has mapped 27 flood-prone areas in the city where monsoon rain can also be stored in recharge wells.

He hopes local authorities will greenlight the proposal soon.

“I think that these 27 wells would be soon active, god willing,” he said.

Meanwhile, supporters like Husain believe mosques and local leaders could play a crucial role in changing habits.

“The water which is used for wudu [ablution] will not end up in your gutter,” he said. “That water is precious.”

No doubt, for Karachi, every drop saved, and returned to the earth, is a promise that the city’s lifeline might yet endure.


International Day of Family Remittances: Pakistani PM hails expats for record payments this year

Updated 16 June 2025
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International Day of Family Remittances: Pakistani PM hails expats for record payments this year

  • In current fiscal, overseas Pakistanis remitted record $34.9 billion, a 28.8 percent increase over the previous year
  • Pakistan received $3.7 billion in workers’ remittances in May 2025 alone, a strong 13.7 percent year-on-year

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday hailed the record $34.9 billion in remittances sent by overseas Pakistanis this fiscal year, describing it as a sign of their “growing confidence in the government’s economic policies.”

In a statement marking the International Day of Family Remittances, the premier said the 28.8 percent year-on-year rise in remittances had significantly bolstered the country’s foreign exchange reserves. Pakistan received $3.7 billion in workers’ remittances in May 2025 alone, a strong 16 percent increase month-on-month and 13.7 percent year-on-year.

“These historic figures are a testament not only to the hard work and loyalty of our diaspora but also to their growing confidence in the government’s economic policies,” Sharif said, calling remittances a “powerful pillar supporting Pakistan’s economic resilience.” 

“This trust reinforces our resolve to redouble efforts for the revival and growth of our economy.”

With over 9 million Pakistanis living abroad, mainly in the Gulf, Europe, and North America, the prime minister praised the expatriate community for their enduring commitment to families back home and their role in sustaining the national economy.

Sharif reiterated the government’s commitment to attracting foreign investment and expanding exports to ensure long-term economic stability, stressing that remittances remained crucial to this goal.

“Let us renew our collective pledge to work hand in hand with our diaspora, development partners, and all stakeholders to overcome our economic challenges and usher in a new era of investment, prosperity, and national progress,” the premier said.


Pakistan closes pedestrian traffic at all Iran border crossings as Israel strikes escalate

Updated 16 June 2025
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Pakistan closes pedestrian traffic at all Iran border crossings as Israel strikes escalate

  • Closures affect crossings in Balochistan’s border districts of Chaghi, Gwadar, Kech, Panjgur 
  • All are key routes for cross-border movement, local trade between Iran and Balochistan province

 QUETTA: Pakistani authorities have closed all major border crossings with Iran for pedestrian traffic amid escalating cross-border strikes between Iran and Israel, officials in the southwestern Balochistan province said on Sunday.

The closures affect the Taftan crossing in Chaghi district, the Gabd-Rimdan crossing in Gwadar district, the Chedgi and Jirrak crossings in Panjgur district and the Rideeg Mand crossing in Kech district. All are key routes for cross-border movement and local trade between Balochistan and Iran. 

“All kinds of pedestrian movement at the Gabd-Rimdan border has been suspended due to the Iran-Israel conflict,” Jawad Ahmed Zehri, assistant commissioner for Gwadar, told Arab News.

Trade activity at the crossing would remain open and Pakistani citizens stranded in Iran would be allowed to return, he said, but no new entries into Iran would be permitted through this point until further notice.

In a separate order, authorities also said the Taftan border crossing in Chaghi district had been closed for pedestrian traffic.

“We have closed pedestrian movements at the Taftan border until further notice,” said Naveed Ahmed, assistant commissioner for Taftan, adding that trade and customs operations from the crossing were continuing as usual.

The Chedgi, Jirrak and Mand Radig border crossings have also been shut, officials in the Kech and Panjgur districts confirmed. 
 
The closures come amid heightened tensions following Israeli strikes on Iranian cities since Friday with scores killed, including senior Iranian military commanders.

The blockade is expected to affect daily wage laborers, small-scale traders and local residents who depend on frequent cross-border movement for commerce, supplies and family visits.

Small items such as fruit, vegetables and household goods are commonly traded by hand or in small vehicles along these routes.

Bilateral trade volume between Pakistan and Iran reached $2.8 billion in the last fiscal year, which ended in June. Both countries have signed a memorandum of understanding with the aim of increasing this volume to $10 billion.

Iran also supplies about 100 megawatts of electricity to border towns in Balochistan.


Israel’s unchecked nuclear capability will have ‘catastrophic consequences,’ Pakistan warns West

Updated 16 June 2025
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Israel’s unchecked nuclear capability will have ‘catastrophic consequences,’ Pakistan warns West

  • Analysts warn Israel’s unacknowledged nuclear weapons could encourage it to take more aggressive steps
  • Tensions have surged in the Middle East following Israel’s June 13 “Operation Rising Lion” aerial offensive on Iran

ISLAMABAD: Pakistan’s defense minister Khawaja M. Asif on Sunday warned Western governments that their support for Israel risked unleashing “catastrophic consequences,” citing concerns over Israel’s nuclear capabilities and regional aggression.

Tensions have surged in the Middle East following Israel’s June 13 “Operation Rising Lion” aerial offensive targeting Iranian nuclear and military facilities, reportedly killing more than 130 people, including senior military commanders and nuclear scientists. Iran has retaliated with missile and drone barrages on Israeli cities, sparking concerns of a wider conflict. 

Israel is widely believed to possess nuclear weapons but maintains a policy of ambiguity and is not a party to the Nuclear Non-Proliferation Treaty (NPT). The 1970 accord is aimed at preventing the spread of nuclear weapons, promoting disarmament, and ensuring peaceful use of nuclear technology. Pakistan is also not a signatory to the NPT but frequently underscores its commitment to nuclear safety and non-proliferation principles through other international frameworks.

Displaced Palestinians stand outside tents as they watch trails of Iranian missiles targeting Israel, from Rafah's Mawasi area in the southern Gaza Strip on June 15, 2025.(AFP)

Analysts warn that in the current volatile situation, Israel’s unacknowledged nuclear weapons could encourage it to take more aggressive steps, increasing the risk that the conflict could spread across the region or even spark a wider international crisis.

“World should be wary and apprehensive about Israel’s nuclear prowess, a country not bound by any international nuclear discipline,” Asif said in a post on social media platform X. “It is not signatory to NPT or any other binding arrangement.”

The minister contrasted Israel’s position with Pakistan’s, stating that Islamabad was a signatory to “all international nuclear disciplines” and maintained a nuclear program solely for “the benefit of our people and defense of our country against hostile designs.”

“We do not pursue hegemonic policies against our neighbors,” Asif added, accusing Israel of doing just that through its military actions. 

“Western world must worry about conflicts being generated by Israel. It will engulf the whole region and beyond. Their patronage of Israel, a rogue state, can have catastrophic consequences.”

The Pakistani minister’s comments come amid growing international concern over the humanitarian toll of Israel’s ongoing military operations in Gaza, as well as fears that the conflict could expand regionally following tensions with Iran and Hezbollah.

There was no immediate response from Israeli or Western officials to Asif’s remarks.