Ayesha Mudassar

Pakistan is witnessing a rapid growth in the local assembling of smartphones, enabling it to curtail imports, and create job opportunities. Asim Ayaz, Secretary of the Mobile Device Manufacturing Committee (MDMC), said favourable government initiatives have helped Pakistan to switch from a net mobile phone importer to a mobile phone exporter.

Source: Engineering Development Board

The MDMC secretary asserted that Mobile Policy 2020 has incentivized local assemblers and provided jobs to local engineers, and trained and semi-skilled youth.

Around 31 companies have received mobile manufacturing licenses since the inception of the policy, attracting more than $120 million in investment. 

The policy, according to Asim Ayaz, has also enabled assemblers to import semi-knocked down (SKD) units at relatively low taxes and duties.

Asim said the implementation of the Mobile Device Identification, Registration and Blocking System to combat phone smuggling has significantly increased capital investment in the sector.

Substantial benefits to the economy will be realized when the assemblers increase investing in the localization and export of mobile phone components, he added.

According to Pakistan Telecommunication Authority (PTA) statistics, the country manufactured 14.08 million handsets and imported 1.14 million units during the first six months of calendar year 2022. In 2020, the number of locally manufactured phones was 13.05 million compared to 24.51 million phones imported. 

According to the Global System for Mobile Communications (GSMA), the mobile industry in Pakistan is estimated to contribute $24 billion by 2023, or 6.6% of the country’s GDP. Leading international brands like Samsung, Oppo, Vivo, Nokia, Techno, ZTE, and others have started manufacturing in Pakistan. This has increased employment and lowered the cost of the locally-manufactured smartphones.

Lowering Pakistan's still-high manufacturing costs can be accomplished by tax cuts, improved production, and implementation of prudent policies that encourage foreign direct investment.

Independent News Pakistan-Wealthpk