Air Link's Acer laptop assembly in Pakistan faces bureaucratic roadblock

Air Link is bound to rely on CBU imports for time being, postponing Acer laptops' local production by nearly year
An undated image. — Unsplash
An undated image. — Unsplash

Air Link's much-anticipated foray into Acer laptop assembly, Pakistan's first, has encountered an unexpected bureaucratic roadblock.

The core of the hurdle impeding Acer laptops' manufacturing in Pakistan is the government's failure to assign the necessary Harmonised System (HS) code for semi-knocked-down (SKD) kits, making the company unable to commence the assembly of Acer's E-series laptops.

As a result, Air Link is bound to rely on completely built-up (CBU) imports for the time being, postponing local production by nearly a year.

The firm has opened its first letter of credit and is expecting an initial shipment of 10,000 CBU units to arrive soon. But, the downside of this model is that it offers low profit margins, with gross margins estimated at 16-18.

This profitability is significantly lower than what the local assembly would yield. Air Link has informed investors that laptop assembly will commence only after the SKD HS code is officially issued.

Originally, Air Link planned to have Acer laptops on shelves by the first half of 2025, but the absence of the HS code and a sluggish approval process have now delayed this to 2026.

Current projections estimate sales of around 45,000 laptops in FY26, far less than what full SKD production could have achieved.

Notwithstanding these challenges, Air Link is moving forward with a CBU-first strategy to establish market presence and understand demand cycles.

This approach makes the company vulnerable to risks from tariff changes and currency fluctuations. Meanwhile, Air Link's television segment is performing well, with expectations of contributing Rs5.4 billion in FY26.