The government of Pakistan has finally removed all the impediments to local mobile phone manufacturing. The State Bank of Pakistan has granted permission to open a mobile manufacturing LC in the country. The ban on the import of mobile phone parts has finally been removed mainly because of the concerted efforts from the Mobile Phones Importers & Manufacturers Association. Now the local mobile manufacturing companies can start their operations in the country. Pakistan achieved a milestone in 2021 with domestic production of mobile phones surpassing imports for the first time. From January to November 2021, the country produced 22.12 million handsets while importing 9.95 million, according to figures from the Pakistan Telecommunication Authority (PTA).
Local Mobile Manufacturing to Resume After Govt Lifts Ban from Import of Mobile Phone Parts
- Concerted Efforts Made By Mobile Phones Importers & Manufacturers Association (MPIMA):
The leading figure who persuaded the government to allow the import of mobile parts was Airlink CEO and Chairman of All Pakistan mobile importer and manufacturers association, Muzzaffar Piracha.
Muzaffar was backed by Hamza Rasheed (General Secretary of MPIMA) and Zeeshan Mian Noor (Senior vice-member MPIMA). The Trio also held a meeting with federal Finance Minister Miftah Ismail. During the meeting, the minister vowed to participate and fully support the local mobile phone industry. Furthermore, the minister stated that his government is pretty serious regarding the growth local mobile phone industry. However, Miftah requested the association members to focus on exports so that we can alleviate our trade deficit.
It is pertinent to mention here that the association of mobile phone manufacturing companies in the country was holding talks with the government a few days ago. MPIMA under the chairmanship of Muzaffar Hayat had appealed to the government for removing all the impediments in the way of exporting mobile phones outside Pakistan.
Muzaffar Hayat Paracha said that this industry should be further supported at the government level so that the employment of more than 500,000 people across the country could be secured and the import of mobile phones would be significantly reduced. Muzaffar Hayat Paracha further said that a country like Vietnam exports 60 billion worth of mobile phones annually and if the government supports the local industry, more mobile phones can be made in Pakistan.
A letter was written by MPIMA to the Federal Minister for Information Technology and Finance demanding the complete removal of the obstacles in the way of the export of mobile phones. 100% cash margin and condition of prior permission from SBP should be abolished. In addition, the government has been asked to issue an SRO for a new duty drawback scheme. Mobile manufacturers have stated that they will export 2.5 billion units in 2023 and 2024 if things go according to plan.
- Muzaffar Hayat Lauded Government’s decision
Praising the steps taken by the government, Muzaffar said that the measures would assist the mobile manufacturing industry to flourish in Pakistan. Furthermore, it would help in increasing foreign exchange, and also assist in creating job opportunities.