Published On: Tue, Nov 21st, 2017

Five Companies to Set Up Cell Phone Manufacturing in Pakistan

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Cell Phone Manufacturing in PakistanIt has been informed that five companies to set up cell phone manufacturing in Pakistan.  The companies are Haier, G5, Jio Phone, Mobo Mobiles and Foxcom. The companies are expected to establish assembly lines soon.

This is set forward for reducing the increasing import bill and it will also appeal to foreigners for investment. The expansion is set to attract foreign direct investment (FDI) worth millions of dollars

The Pakistan Telecommunication Authority (PTA) issued procedures for establishing assembly lines in Pakistan in a goal to enhance the speed of digitization.

A senior PTA official said, “We expect these companies to start manufacturing mobile phones in their plants soon.”

Furthermore, he added that, “Mobile phone users in Pakistan are fast shifting to hi-tech products; of the 24 million mobile sets being imported in a year, almost half are smartphones.”

It was also explained that China has a great hold over the manufacturing, this is the reason for the cheap labor. However, due to boom in the industry the labor cost has increased now.

PTA has given clear directions that the mobiles manufactured in Pakistan will clearly state that they are assembled in Pakistan.

At the start the no objection certificate will be given for six months for assembly lines and after inspection it is expected to be extended depending on the international standards kept.

It is expected that this will expand the broadband adoption as more people will be able to afford cellphones.

It has been accepted that smuggling of mobile phones is a big problem which needs to be taken care off. It has been reported by market sources that mobiles worth $1 billion are smuggled into Pakistan every year.

Government is making strides in stopping the smuggling and PTA is planning a system in which mobile phones will not work in Pakistan without PTA approved IMEI number.

The problem of smuggling has led to tax evasion and cheaper sale of mobiles. Cell phone manufacturing in Pakistan is a good step for the industry. It will also help in lowering smuggling and other problems in the industry.

About the Author

- Junaid Ashraf has a Master of Philosophy degree in government and public policy. He has international publications through Taylor & Francis, a leading British publishing body. He regularly write columns for newspapers. His interests include international political economy, geopolitics and good governance. He writes for Asia Times.