All you need to know about Pakistan’s first-ever Mobile Phone Manufacturing Policy
According to the Pakistan Telecommunications Authority, Pakistan is the seventh largest importer of mobile phones. If mobile phone manufacturing is localized it could help in contributing towards much needed economic growth.
The Economic Coordination Committee (ECC) has approved Pakistan’s first-ever Mobile Device Manufacturing Policy.
After a detailed briefing on various aspects of the policy, the ECC directed the Ministry of Industries and Production to further fine-tune its various features and incentives for promoting localization and research and development leading to the export of mobile phones.
Main Points Of the Policy:
- Regulatory Duty Tax for CKD/SKD manufacturing by Pakistan Telecommunication Agency for approved manufactures under IOCO approved quota, will be exempted.
- Fixed income tax on CKD/SKD manufacturing of mobile phones up to $350 will be exempted.
- Fixed income tax on $ 351-500 category and $ 500 on CKD/SKD manufacturing will be increased by Rs 2000 and Rs 6300 respectively.
- The local industry will make sure that the localization of parts and components goes on as per roadmap.
- EDB will act as Secretariat of Mobile Phone Manufacturing Policy and will ensure the development of allied parts, components, tools, and devices.
The objectives of this policy include technology acquisition and localization of mobile devices through local investment, Joint Ventures, Foreign Direct Investment, etc, creation of 200,000 direct and indirect jobs, price reduction for consumers, increase in digitization through supporting 4G/5G technologies, development of efficient manufacturing eco-system, exports of competitively manufactured handsets and achievement of security objectives.
According to the Pakistan Telecommunications Authority, Pakistan is the seventh-largest importer of mobile phones. If mobile phone manufacturing is localized it could help in contributing towards much needed economic growth.
However, establishing a mobile phone manufacturing industry in Pakistan is going to be a difficult task. Even if we obtain the required raw materials, industries will still need to buy specialized machines for certain manufacturing operations. Such machines are very expensive. Moreover, special industrial complexes will need to be built and workers will have to be trained.
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