Govt of Pakistan has authorized leading mobile manufacturing companies G-five, Airlink, Transsion, Inovi, Vivo, Oppo, Tecno and 12 others for local mobile manufacturing in Pakistan. Licenses have been issued to manufacture 2G, 3G and 4G devices. Govt has introduced tax incentives for assembling/ manufacturing of mobile phones. A presidential order was issued to abolish withholding tax on local made mobile sets. The step was taken to encourage the foreign investors to invest in Pakistan.
Approval by Govt. of Pakistan for Foreign Direct investment being considered as a giant leap towards digital Pakistan. The decision taken by the govt will not only boost up the economy of Pakistan but also create opportunities for more employments.
Pakistan Telecommunication Authority (PTA) reveals that mobile phone subscribers in the country reached to 164 millions in 2020. Govt introduced a comprehensive manufacturing policy to spur the production of cell phones under Mobile Device Manufacturing (MDM) Regulations. Authorized local Mobile manufactures will also be given privilege to manufacture their new brands.
Trade Map Data shows Pakistan has become the world’s 7th importer to import mobile handsets from different countries of the world. Pakistan due to local manufacturing intends to export mobile phones in other countries along with fulfilling its own local demand. This act will bring down the cell phone prices. Now, after tax relief there will be a clear cut difference of RS.1900 per 100 USD devise between a locally manufactured smart phone and imported cell phone. Self sufficient Pakistan will be able to have lesser dependence on mobile phone imports.
Stats of Pakistan Telecommunication Authority (PTA) show that annually 32.8 millions mobile handsets in total are imported in Pakistan. 20 millions handsets used by the people are 2G supportive while remaining 14 million support 3G and 4G network. MDM Regulation 2021 by PTA asks the local mobile manufacturers to expose details of land, finances, nationality of investors etc.
Initiative taken by the govt will pull investors from various countries to establish their plants for making mobile phone accessories as well. Planning has been made to manufacture 2 pc of device chargers on local basis till 2023. 10 percent of mother boards-assembly will be manufactured locally while 10% of all kinds of batteries and 8 percent of total manufactured display screens will be made in Pakistan. Similarly 8 pc of local made plastic parts will be readily available in the country.
Engineering Development Board (EDB), an attached department of Ministries of Industry and Production has confirmed that all the new entrants have submitted applications for starting manufacturing units in Pakistan. Vivo has shown the consent to set up production unit in Faisalabad. Airlink has shown its interest for local mobile manufacturing in Lahore while Advance Telecom has preferred Karachi to establish its manufacturing concern.
The idea to promote “Manufactured in Pakistan “ not only for the sets but the parts too as internationally recognised brands being authorised for local manufacturing are planning to export their Pakistani made products to Middle East and other Gulf countries. Investors have lauded the govt.’s initiative for giving international brands the permission to start manufacturing in Pakistan.
PTA has made a successful trial of 5G mobile phone technology in Feb 2021. The demonstration was made for cloud gaming, remote surgery and overview of anticipated 5G tech application for economic and social development of Pakistan. It aims to launch 5G connectivity on full fledged basis in the country till end of 2022. With the successful demonstration of 5G on Trial basis, it is believed that technology is going to unlock new doors of e-health, agriculture, smart homes and cities, artificial intelligence, Internet of things (IoT), cloud computing and self driven autonomous vehicles.