The Economic Coordination Committee (ECC) has approved the first mobile device manufacturing policy in Pakistan.
After providing detailed information on various aspects of the policy, ECC commissioned the Ministry of Industry and Production to further optimize the various localization and research and development functions and incentives that lead to mobile phone exports.
The policy was drafted in Jan 2019 by the EDB ( Engineering Development Board)
Policy Main Clauses
- The legal tax for the production of CKD( Complete knockdown)/ SKD (Semi Knockdown) of the Pakistani telecommunications organization for approved manufacturers within the quota approved by the IOCO( Input Output Coefficient Organization) is exempted.
- Fixed income taxes on CKD / SKD cell phone production up to $ 350 are exempt.Fixed taxes of $ 351-500 and $ 500 to increase CKD / SKD by Rs 2000 and Rs 6300, respectively.
- The local industry ensures that parts and components are according to the roadmap.
- EDB will act as secretariat for the mobile phone manufacturing policy and will develop related parts, components, tools and equipment.
The production of CKD/DKD mobile units in Pakistan will create a plenty of jobs across the country.
Also Read : Chinese Compqny has started local mobile production in Pakistan
The main objectives of this policy include the acquisition and localization of mobile devices through local investment, joint ventures, foreign direct investment, etc., creating 200,000 direct and indirect jobs, price reductions for consumers, increased digitization by supporting 4G / 5G technologies and the development of an efficient ecosystem for manufacturing, exporting competitive manufactured mobile phones and meeting security objectives.
Pakistan is the seventh largest importer of mobile phones, according to the Pakistani telecommunications authority. Locating mobile phone manufacturing can help promote much needed economic growth.
However, building a mobile phone industry in Pakistan will be a difficult task. Even if we get the raw materials we need, the industries have to buy special machines for specific production activities. Such machines are very expensive. In addition, special industrial complexes must be built and workers must be trained.
