While saving precious forex reserves for Pakistan, the production of local and foreign mobile companies has not only outnumbered imports of mobile devices, but also created more than 22,000 jobs for the local population.
According to Pakistan Telecommunication Authority (PTA), between January and May 2022, at least 12.41 million mobile phones were assembled/manufactured in Pakistan, while only 0.94 million devices were imported. Out of them, 5.42 million are smartphones while 6.99 million are 2G phones.
Chinese mobile manufacturing companies are playing a leading role in helping Pakistan increase local manufacturing against phone imports.
Between January and May 2022, China’s ITEL is leading with 1.6 million devices followed by Chinese companies Vivo, VGO Tel, and Infinix with 1.32 m, 1.26m, and 1.05m respectively. China’s Tecno has manufactured/assembled 0.71 m while Oppo has manufactured/assembled 0.72 m phones in Pakistan from January to May 2022.
South Korean Samsung and Finland’s Nokia have manufactured/assembled 0.94 m and 0.80m phones respectively.
The data shows that in 2021, Pakistan had locally manufactured/assembled 24.66 million phones against 10.26 million imports. Local manufacturing in 2021 surpassed the finished device import for the 1st time in the country’s history. In 2020, the 24.51 million imports were well over the 13.05 million locally manufactured/assembled phones.
Device Identification, Registration and Blocking System (DIRBS) has created a level playing field for all entities in Pakistan, resulting in the establishment of local assembly plants. In view of the successful development of this industry, PTA issued Mobile Device Management (MDM) Regulations, 2021, in accordance with the Mobile Manufacturing Policy issued by GoP in June 2020. The policy offers incentives including tax exemptions, etc., for all entities that establish manufacturing plants in Pakistan.
As many as 30 local and foreign companies both stand-alone and joint ventures have obtained 10-year MDM authorization from PTA and have established manufacturing plants for the purpose. The leading brands have established their plants in Pakistan, enabling smartphone manufacturing in Pakistan and creating jobs for the locals.
According to Pakistan Economic Survey (PES) 2021-22, mobile manufacturing companies have created around 22,000 jobs for the local population.
Pakistan has also started exporting “made-in-Pakistan” mobile phones to foreign countries; if the exports grow at a steady speed, it will help the country to overcome its trade deficit.
