Most nations, especially the developing ones, struggle to attract foreign investments and boost the manufacturing and services sectors. FDI is a key factor that helps the economy of any country to grow. It also creates job opportunities and helps to create 100% Export Oriented Units. In this tech era, we all know that mobile industry is on the boom and it will be a smart decision for any country to attract the international mobile manufacturers to install their plants by offering favourable incentives. There is a lot that we can learn from our neighbour, India that has become the world’s second-largest local mobile manufacturer of the world after China.
Proficient Policies can Attract International Mobile Manufacturers to Invest in Pakistan
Following are some strategies that Pakistan should adopt as these strategies made the Indian market a hub for mobile manufacturing.
- Offer incentives to companies for setting up manufacturing units
Pakistan should offer financial investments to the mobile companies as our neighbour country India offered financial incentives and plug-and-play facilities with an outlay of about 500 billion rupees
- Introduce a strategy that is easier to implement
Pakistan should introduce a clear strategy that can be implemented easily to promote the establishment of new business and or to encourage the existing businesses.
- Pakistan should promote the local manufacturing and exports (Just like the ‘Make in India’)
Pakistan should learn from ‘Make in India’, a national program of Government of India to encourage the domestic manufacturing and exports. India has achieved tremendous success in mobile phone and component manufacturing by designing such a program.
- Design good policy with strict implementation
Design the proficient policy, but that is not enough. We need the strict implementation of the policies too. Recently, Pakistan approved a policy for local manufacturing of mobile phones, and we hope that the strict implementation of the policy can bring a distinctive change. We can see how India strictly implement the policies and get success.
- Stable Tax regime
Offering substantial tax incentives can attract international mobile manufacturer to invest transparently. Rationalized tax policy can open the ways and encourage mobile companies to invest without any hesitation.
- Focus on proper research and development
Pakistan needs to conduct a proper survey and identify the loopholes that making hurdles for international mobile manufacturers to invest. We need an independent body that conducts surveys and does proper research as India’s mobile industry body ICEA is actively working.
- Focus on investor-friendly schemes
Investment friendly environment is the essential factor which needs to provide to the investors. There is a need to reduce the restrictions on FDI.
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