Government has finalized Made in Pakistan initiative under the Local Mobile Phone Manufacturing Policy. Under this policy, the regulatory duty on the local assembly line will be reduced to zero from the existing 5%.
Due to this initiative, 40 percent of localization in terms of manufacturing will be observed in a span of 2-3 years. It means manufacturing of chargers, casing and packing will be done in Pakistan and as the time passes by complete production of Android devices will be done locally.
Local manufacturing will also impact the employment regime of Pakistan, creating jobs for 200,000 people, linking the country with the global supply chain.
Local Mobile Phone Manufacturing Policy- The Next Big Thing For Pakistan
The draft of Mobile Device Manufacturing s presented to the Ministry of Industries and Production, all that is needed is the approval of the Economic Coordination Committee.
Pakistan is the seventh-largest importer of mobile phones with annual sales of 34 million sets in 2019. With increasing demand and competitive advantage of labour cost, it can develop into a major industry capable of generating an export surplus to sell its brand of “Make in Pakistan” in the international markets.
According to an official, international companies including Samsung, Nokia, and Huawei have indicated to invest in smart mobile assembly and manufacturing in Pakistan once the Policy is approved by the ECC. The benefits of local mobile phone manufacturing are widespread, all we need to know is to understand the whole idea.
Though the government has already delayed the policy, it is said that delay was due to the collection of data and formulation procedure to acquire the technology.