In a significant move towards reducing dependency on imports and fostering local manufacturing, Chinese smartphone giant Vivo has invested a substantial $10 million in a manufacturing plant in Pakistan. This strategic investment positions Pakistan on the path towards a ‘Made in Pakistan’ policy, aligning with the country’s goal of boosting local production and minimizing reliance on imported goods.
Fitch, a global credit rating agency, emphasized the importance of Pakistan’s transition to become less dependent on imports, particularly in the context of the rapidly growing mobile broadband market. The agency identified falling total ownership costs (TCOs) for premium devices as a key factor that could unlock the full value of Pakistan’s dynamic mobile broadband sector.
Vivo’s investment in the manufacturing plant signifies a pivotal step in this direction, with the facility capable of producing up to 1 million smartphones annually. While this output may not fully meet the country’s total demand, the move underscores a commitment to localization and self-sufficiency in the production of smartphones.
The ‘Made in Pakistan’ policy gains momentum as manufacturing becomes a key component of the country’s economic strategy. The investment by Vivo is expected to contribute to job creation, technology transfer, and the overall growth of the local economy.
As the Pakistani government encourages initiatives that promote indigenous production, Vivo’s $10 million investment stands out as a noteworthy example of a foreign company aligning its business strategy with the national agenda. This venture not only bolsters Pakistan’s position in the mobile technology market but also sets a precedent for other industries to follow suit.
Stay tuned for more updates on Pakistan’s economic landscape and the unfolding developments in the technology sector as the country takes strides towards self-sufficiency and the promotion of ‘Made in Pakistan’ products.