Government to finalize the draft policy to promote the mobile phones manufacturing in Pakistan
The new policy will promote mobile devices manufacturing within the country and will provide new investment and employment opportunities.
- The new policy will promote mobile devices manufacturing within the country providing new investment and employment opportunities.
- The Advisor to Prime Minister Raza Dawood has directed the EDB to finalize the draft policy that aims to assemble the mobile phones in Pakistan.
A draft policy that aims to develop and promote ‘Made in Pakistan’ scheme for growth and development is being finalized. The new policy will promote mobile devices manufacturing within the country providing new investment and employment opportunities. The locally assembled mobile phones will be an alternative for the costlier imported cellphones.
According to the officials of the Engineering and Development Board (EDB), Draft Mobile Device Manufacturing Policy is under consideration to develop and promote mobile devices manufacturing in Pakistan as a part of the government’s Electronic Products Manufacturing Initiative.
The officials also said that the locally-assembled mobile phones would replace the costly imported handsets as tariff structures for local manufacturers would be relaxed. The consultations were held with the local representatives of multinational cellular companies and their market players, including dealers to formulate the draft policy, they added.
The Advisor to Prime Minister Raza Dawood has directed the EDB to finalize the policy by next month and also said that the proposed ‘Draft Policy’ would attract the domestic and foreign direct investment in the engineering sector.
The advisor also highlighted that the Special Economic Zones are providing the technical and financial support under multiple incentives by the provision of tax holidays and certain duty exemptions on parts that are used in the manufacturing of mobile phone devices and other electronic goods.
Pakistan does have the market potential for the mobile phone industry as sales of mobile phones in 2018 alone amount to about Rs360 billion. Moreover, the draft policy envisages that the semi-knocked down (SKD) and completely knocked down (CKD) units be encouraged in the country and also stressed on the need for the traffic structures to be rationalized.
The EDB officials said, Pakistan Today reported, that the companies will opt for SKD (the assembly of sets with imported parts) and in the later stages the manufacturing of the parts will be commenced within the country under CKD.
The officials suggested that the duties on the parts may be reduced and certain benefits may be offered to the local manufacturers of the parts so that the mobile sets assembled through SKD and CKD become cheaper than the mobile sets imported as completely build units.
Do you think that local assembly of mobile phones would stand the global competitiveness given the existent state of inflation and tariffs? Share your thoughts in the comment section below