Samsung Intends to Set up a Mobile Manufacturing Unit in Pakistan

In recent times, a number of international smartphone manufacturers like realme, Tecno, etc. have shown interest in establishing their local assemblies in Pakistan. And now, the tech giant Samsung has been negotiating with three investors for setting up a mobile manufacturing unit in the country.

According to the sources, of the three investors, one is a franchise from South Korea which has already established vehicle assembling plants in Pakistan under Auto Development Policy (ADP) 2016-21, while the remaining two are different parties.

Samsung Intends to Set up a Mobile Manufacturing Unit in Pakistan

Furthermore, the sources said that so far no agreement has been reached as Samsung is currently shortlisting a number of companies and is in the process of finalizing its plan.

According to the source,

Companies being shortlisted for award of licence. The Korean company aims to start the local assembly of cellphones in the last quarter of this year.

The Engineering Development Board (EDB) of Pakistan, which comes under the Ministry of Industries and Production (MoIP) has approved Mobile Device Manufacturing Policy (MDMP) in 2020. As a result, more than 20 companies have been allowed for mobile device manufacturing authorization from March to June 2021.

According to the EDB’ss list, factories’ locations include Rawalpindi, Karachi, Lahore, Faisalabad, and Islamabad. These companies include Nokia, Oppo, Infinix, Tecno, Itel, Vivo, Alpha, Realme, VGOTEL, DCODE, Calme, Xcell, Spice, TCL, Alcatel, etc.

The sources have said that the government has devised MDMP to motivate foreign players to take a plunge in Pakistan for setting up local assembly units. The primary motive is to produce the product under the banner of “Make in Pakistan” and to substitute imports.

As per the Economic Survey 2020-21, from July 2012 to February 2021, the telecom sector has generated over $3.9 billion of Foreign Direct Investment (FDI). Moreover, the FDI in telecom during July-February FY21 was around $101.1 million. Along with that, telecom operators have invested an amount of $363.9m during July-December FY21. The underlying reason behind this hefty investment is the cellular mobile sector which has invested $253.5m during the same period.

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