Yes, that’s true that in three firms are going to start mobile production in Pakistan. The name of these three firms are: firstly, Vivo, secondly Air link and lastly Advance telecom. These firms have declared that their intention is to establish manufacturing units in Pakistan regarding mobile production. This happens after providing them with a relaxed environment regarding tax by the Pakistani Govt. This news is mentioned in Dawn News that the Govt. has eliminated withholding tax on locally manufactured mobile units in Pakistan. So that the assembling and production of mobile parts in the country may increase.
This act of Govt. is also praised by the investors that they are going to abolish the withholding tax because previously the imported mobile phones were cheaper as compared to manufacturing ones. Amir Allahwala, who is the chief executive of a company for manufacturing Infinix and Techno mobiles sets, said that now after the relaxation in the tax, around 1900 Rs price difference has been created per set because the imported one set has to pay a tax of 100.
While, in the meantime, one of the senior officials from the Engineering Development Board (EDB), confirmed that for establishing manufacturing units 3 new entrants have applied, which is also an attached department of the Ministry of Industries and Production (MoIP).
These units have started working in Pakistan’s big cities. Vivo is working in Faisalabad, nest one, Air link in Lahore, and lastly Advance telecom in Karachi.
According to the official, they said that the EDB is the policy that is keeping in consideration for mobile sets manufacturing in Pakistan. Meanwhile, in the telecom sector of Pakistan, PTA has also issued the regulation of 2021 regarding Mobile device manufacturing.
The PTA’s regulations point out the necessary information, which means the requirements for establishing a manufacturing plant; that includes information such as finances, land, nationality of investors, etc. On the other hand, the EDB is also expressing its views that contests of such detailed information related to establishing the production unit come under the shadow of the MoIP.
The plan directed by the PTA regulation is basically to ensure the comprehensive localization to compete locally producing the packing for at least 2% of the total devices manufactured by the company within one year.