The Economic Coordination Committee has approved the first-ever
Mobile Device Manufacturing Policy in Pakistan. Pakistan is planning to export
mobile devices. For that purpose, the state has forwarded the instructions to
Ministry of Industries and Production. They are further advised to promote
research and development to ensure quality manufacturing which will fulfill the
needs of emerging markets.
The main aim for this approval includes;
- Local manufacturing,
- Promote joint ventures,
- Increase the inflow of FDI (Foreign Direct Investment),
- Minimize brain drain by creating employment opportunities,
- Reduce mobile phone process,
- Increase in digitalization of industry with producing 5G enabled mobile phones, and
- Increase export volume
Pakistani economy has much potential for that. As per PTA (Pakistan
Telecommunication Authority) stats, Pakistan is the 7th largest
imported of mobile phones in the world. Localization of this manufacturing will
lead to much contribution to the Pakistani economy.
Previously, the growth of local manufacturing was very slow and
there was no significant development in this industry. The main reason behind
that was the lack of policy and an unpredictable business environment.
The main points of this policy include:
- Elimination of regularity tax for approved manufacturers under input/output co-efficient organization approved quota,
- Elimination of fixed income tax for phones up to $350,
- Increase in fixed income tax on devices above $350 to $500 category by Rs.2000 and Rs.6300 manufacturing,
- Removal of sales tax on the manufacturing of mobile devices, and
- Add mobile phone devices under import policy 2016 to minimize the import of used mobile phones.
However, the local industry will also make sure the manufacturing
of parts and components of mobile phone devices.
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