Pakistan Telecommunication Authority (PTA) has granted the manufacturing licence to Select Technologies Private Ltd, a wholly-owned subsidiary of Air Link Communication, for the manufacturing of Xiaomi mobile phones in Pakistan, announced the company .

Air Link Communication Limited already has the licence to manufacture mobile phones of Transsion Holding’s major brands i.e. Tecno & iTel.

Earlier this month, Xiaomi, the global consumer electronics and smartphone giant, joined hands with Select Technologies (Pvt) Limited (SELECT), as its manufacturing partner for Xiaomi mobile phones in Pakistan targeting a production of initially around 2.5 million to 3 million handsets annually.

"This is a significant milestone for the economy as it will reduce the import bill and create jobs for the local population," said the company in a press release. "This is a result of the government’s policies to enhance localisation and stimulate the industrial growth of the country."

Air Link announces wholly-owned subsidiary for mobile device manufacturing

Earlier in October, Air Link Communication Limited had announced that it will incorporate a wholly-owned subsidiary 'Select Technologies (Pvt) Limited that would manufacture mobile devices of ‘selected brands.’

The company added that it would be making an investment of Rs500 million at Rs10 per share for the purpose.

The company is one of the largest mobile phone distributors of Pakistan with a market share of around 20% within imported mobile phones, Ismail Iqbal Securities had said at the time of the IPO.

The company also started to manufacture mobile phones locally in Pakistan in April with a monthly capacity of 400,000 units per month, which is expected to reach up to 550,000 units per month by FY23.

Pakistan’s smartphone market has witnessed a surge of international players in recent months, as the country’s young population has become an attractive market for mobile phone manufacturers.