Major mobile phone assembly plants are on the verge of ceasing operations as a result of the industry’s dwindling supply of raw materials and the inability to establish letters of credit (LCs) for the import of completely knocked-down (CKD) units since May 20.
Through a tweet, the State Bank of Pakistan (SBP) made it clear that it had not ceased making import payments and that commercial banks had enough dollar liquidity to cover them.
In fact, so far this month, import payments totaling almost $4.7 billion have been made through the interbank market.
Manufacturers and businesspeople are becoming increasingly concerned about the issue brought on by LC limitations, which are purportedly attributable to the lack of dollars in the market.
,” Tecno Pack Electronics CEO Aamir Allawala told ,“Banks are not opening LCs for mobile phone CKD units due to shortage of dollars since May 20.
He alarmed that industry may shut down beacause, “Now, the industry has used all its raw material and 80% of the industry is closed unfortunately “Jobs of almost 50,000 people working in the industry are at risk.”