EDB holds Meeting to Revise Mobile Manufacturing Policy

The Engineering Development Board (EDB) has arranged a meeting with authorized mobile phone manufacturers to formulate the framework for a new policy governing the manufacturing of mobile devices and related equipment. This directive was conveyed through a letter from the EDB on Tuesday.

The Mobile Device Manufacturing Policy 2020–23 (MDMP 2020–23) expired earlier this year, which served as the impetus for this meeting.  This policy, which was initially implemented during the time of the Pakistan Tehreek-e-Insaf (PTI)-led government, effectively attracted 31 mobile businesses to invest in Pakistan.

The upcoming discussions will concentrate on several crucial issues. To begin, the EDB intends to evaluate existing and intended tariff regimes for locally manufactured mobile devices. Furthermore, the selection of products to be manufactured, as well as the establishment of a tariff structure for associated equipment such as POS machines and tablets, will all be carefully assessed to create an entire ecosystem.

EDB will evaluate existing and intended tariff regimes for local mobile manufacturing

Furthermore, talks will include the proposed policy’s localization plan. The EDB will investigate the composition of importable components that will be included or omitted from manufacturer allocation quotas. The development of a list establishing the minimum number of parts and components regarded as importable will also be evaluated. Funding sources, mechanisms for collecting and disbursing R&D allowances, and the feasibility of proposed rates, such as 3% or 8%, will also be scrutinized.

Aside from financial concerns, the summit will cover other important issues such as easing business operations, minimizing regulatory burdens on the industry, creating implementation timelines, and obtaining approval for policy documents.

The CEO of EDB, an institution under the Ministry of Industries and Production, will preside over the meeting. The CEO maintains the power to bring forward any additional agenda items for consideration as needed.

It’s worth noting that, at this point, only approved mobile phone makers have been invited. Following the development of a preliminary report, the EDB has indicated that it will engage with other stakeholders at a later, more appropriate time.

The MDMP 2020–23 encouraged local production and assembly of mobile devices, resulting in about $300 million in investments and the creation of 50,000 jobs over the last two years since January 2021. This venture drew well-known companies such as Xiaomi, Samsung, Nokia, Oppo, TECNO, Infinix, Vgotel, and Q-Mobile.

It is worth mentioning, however, that local manufacturing facilities saw a decrease in phone and handset output, producing or assembling 21.94 million in 2022 compared to 24.66 million in 2021. This drop can be attributed to import-related concerns, including the ban on opening letters of credit (LC).

In contrast, the number of commercially imported phones and handsets declined dramatically to 1.53 million in 2022, compared to 10.26 million in 2021 and 24.51 million in 2020.

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