Potential of mobile phones industry

Time is ripe for the new government to introduce Pakistan as one of the best and largest mobile phones exporters in the world

Potential of mobile phones industry

The list of 15 countries that exported the highest number of mobile phones in dollar terms during 2017 neither includes India, the rising economic power of Asia, nor Pakistan, the "under-developed" country. Going through the list below, it should also be noted that China’s share in the world mobile phones export is 48 per cent followed by Vietnam 11.9 per cent. But India has taken a grand leap in recent months as the world largest factory of Korean brand mobile phones has been built in India. Two small countries -- Czech Republic and Slovakia -- have mobile exports worth billions of dollars.

The list of countries and the worth of their exports are: China, US$127.3 billion (48% of exported mobile phones); Vietnam, $31.5 billion (11.9%); Hong Kong, $23.9 billion (9%); Netherlands, $22.8 billion (8.6%); United States, $11.9 billion (4.5%); South Korea, $7 billion (2.6%); Germany, $5.5 billion (2.1%); Slovakia, $4.8 billion (1.8%); Austria, $4.7 billion (1.8%); Singapore, $4.5 billion (1.7%); Czech Republic, $3.7 billion (1.4%); Sweden, $1.8 billion (0.7%); Thailand, $1.7 billion (0.6%); Taiwan, $1.6 billion (0.6%); United Kingdom, $1.5 billion (0.6%).

To understand the dynamics of economy, one has to visit the economies of several nations including, Malaysia, Vietnam and Bangladesh. Malaysia concentrated on the production of palm oil as the first step to provoke economic growth. It emerged as the world’s largest palm oil exporting country with a share of 44 per cent in the world exports. Malaysia’s share of fats export in the world is 27 per cent. The heavy share of only two products has made the country an important player to cater to the needs of world population.

Vietnam chose shoes and electronics industries, including mobile phones, and achieved a breakthrough in its development plans.

An opportunity to spark industrial revolution is knocking at the door of Pakistan as China is heading toward heavy industry and wants to offload its small and medium industry which is increasingly becoming unfeasible due to rising cost of production in China. It has already inked a deal with Bangladesh to shift its small and medium industry in that country which is also a rising power. Bangladesh already has achieved laurels in the field of stitching industry and has exported over $22 billion worth of readymade garments and apparels last year. The transfer of Chinese technology, machinery, expertise and investment will push its economy to new heights.

China is also willing to transfer some of its industries to Pakistan, but several hurdles are already waiting to bulldoze the move. Apart from security challenges and financial constraints, the country is facing pressure groups to scuttle any government move toward prosperity and economic growth. Some of the local businessmen are also opposing the transfer of Chinese industry to Pakistan, fearing that they will lose their businesses.

Though the transfer of industries is part of the China-Pakistan Economic Corridor project, lethargic attitude of the Pakistani officials is visible as even its website is not up-to-date and procedural details to invite international businessmen to Pakistan are also missing.

The new government should concentrate on the assembling of mobile phones and laptops as both products have tremendous demands not only in Pakistan but also abroad. Pakistan is one of the countries having highly qualified professionals of software engineers and thousands of young professionals are already working for their foreigner clients. Apart from Chinese mobile phone brands, Pakistan should also invite Korean brands to set up their units in Pakistan.

According to the German ambassador to Pakistan, Pakistan will have to improve its image as a safe country and clarity has to be maintained in award of contracts. The European investors will not be willing to invest their money in a political instable country. However, Chinese investors are willing to come to Pakistan despite certain reservations.

In the first stage, the new government should concentrate on the assembling of mobile phones and laptops as both products have tremendous demands not only in Pakistan but also abroad. Pakistan is one of the countries which has the highly qualified professionals of software engineers and thousands of young professionals are already working for their foreigner clients. Apart from Chinese mobile phone brands, Pakistan should also invite Korean brands to set up their units in Pakistan. And it will be a big breakthrough if the government manages to persuade Apple Corporation, which is the world’s first trillion dollar company, to set up its unit in Pakistan. There are various environment friendly areas to develop infrastructure to host foreign companies such as Soon Valley in Punjab and several valleys in Khyber Pakhtunkhwa.

The Pakistani bureaucrats are talented and smart and have the ability to work out modalities for foreign investors. They have the ability to make perfect plans as they are trained for that. However, after making a perfect plan, they are in the habit of incorporating a small section in the plan which bulldozes the whole scheme of things. A check must be placed on trouble makers to stop them from applying them the formula of failures and disasters.

Pakistan is an energy-starved country and cannot afford heavy industry. By shifting to the mobile phones manufacturing, it can have its share of mobile export in the world market which is not yet saturated. Pakistan has cheap qualified and professional labour as compared to other countries in the region. Therefore, time is ripe for the new government to introduce Pakistan as one of the best and largest mobile phones exporters in the world.

Prime Minister Imran Khan has offered olive branch to India to maintain peace and stability in the region. The safe borders of Pakistan on the western and eastern sides will give the nation a break to work out the future course of action. If Pakistan and India reach an understanding to make peace, it will be a blessing for the people of the whole region. Wars are now fought on the economic fronts and not on the borders and the leaders of both Pakistan and India should understand it. It is the failure of the two nations that they could not resolve their issues 71 years after independence.

Potential of mobile phones industry