Samsung, Huawei, and Nokia to manufacture cell phones in Pakistan

Pakistan, being an agricultural country has always focused on raw materials. No doubt, the export of quality crop foods, fruits, and cash crops, has proven fruitful of the economy of the
country.

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Samsung, Huawei, and Nokia to manufacture cell phones in Pakistan

By

Sana Hassan

Pakistan, being an agricultural country has always focused on raw materials. No doubt, the export of quality crop foods, fruits, and cash crops, has proven fruitful of the economy of the country. It has generated a major portion of the country’s overall income. But things are gradually changing. More attention is being paid on the tech-industry and its betterment.

Low wages and Manufacturing plants

These internationally recognized companies are considering Pakistan as there new pit-stop to set up manufacturing plants. The idea was born when the labor was considered in Pakistan to be a lot lower than in any other country. Previously, China was the suitable country for manufacturing but the wages have increased and Pakistan is the new ideal.

How is this good news?

If we consider the minimum wages part of this story then it might look as if the country will suffer. But on a broader vision, the local manufacturing will significantly decrease the prices of smartphones that are sky-rocketing these days. The taxes, duty and import charges will no longer be applicable to the local merchandise. This will be helpful in equipping more population with the handy-tech at lower cost.

How does Government plan on doing that?

The current government has decided to formulate the new mobile phone manufacturing policy. This was revealed in the meeting of Pakistan Mobile Manufacturers and representatives of Federal Board of Revenue (FBR), Ministry of Information Technology and Telecom, Pakistan Telecommunication Authority (PTA) and Engineering Development Board (EDB). The model implemented in India is under consideration of being followed because of its success.

Amendments and policy

In order to aid the process of the govt. has announced amendments in the policy to allow the imports of units on lower prices. This will also play role in encouraging local stakeholder to set-up more plants with the company rights.

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Semi- Knock-Down Assembly Unit

A mobile phone was a lot of tiny sub-parts. Many of these parts are to be imported from other countries like Korea, China, and Germany. Thus, the constant supply-chain with low tariffs needs to be launched. The semi knocks down units will aid the process. It means that various semi-assembled kits will be imported from other countries and complete assembly will take place in Pakistan. Some of the parts will also be manufactured in the local Plants.

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