Muneeb ur Rehman

Amid a growing telecom industry, Pakistan needs to promote the manufacture of IT hardware products in order to meet the domestic demand, said Kamran Mirza, CEO Pakistan Business Council (PBC), while talking to WealthPK. “Pakistan relies heavily on the import of hardware products such as personal computers (PCs), handsets, LEDs, and network equipment. The rising trend of digital connectivity can contribute to the economy through the manufacture of these products locally,” he said. According to the Pakistan Economic Survey 2022-23, the telecom sector in Pakistan attracted more than $6.3 billion investment between 2018 and 2023. In the fiscal year 2022, telecom operators reported a substantial investment of $2,073 million, primarily driven by spectrum acquisition and network expansion.

However, during the first two quarters of the Fiscal Year 2023, the investment figure stood at a provisional amount of $422.0 million, indicating a decrease in comparison. Kamran mentions the bottlenecks hindering the manufacture of IT-related hardware industry. “The imposition of high import duties on the components used in the production of finished hardware products undermines the competitive edge of domestically assembled products when compared with the imported products.” Kamran added that the refurbished hardware market encounters the challenge of monopolies held by prominent global enterprises like DEL and INTELL. These companies, benefiting from advanced technology and superior human resources, dominate the market, leaving limited opportunities for the local competitors.

“Additionally, the volatility of the Pakistani rupee against the US dollar creates turmoil in the import market for microprocessors and semiconductors that are widely used items in CPUs, monitors, cell phones, and other hardware products, he said. “In order to promote the manufacturing of IT-related hardware products, the government needs to provide tax incentives, improve the regulatory framework, and reduce supply-chain disruptions,” he advised. “The government can explore public-private partnerships by extending financial support to the private sector while delegating the technical aspects of hardware manufacturing to their expertise,” he commented. The scope of locally integrated or manufactured hardware products is tremendous. The rising domestic demand for IT-related hardware products in offices and educational institutions can be met by improving the local manufacturing.

Credit : Independent News Pakistan-WealthPk