Samsung is considering setting a production plant in Pakistan. When it comes to manufacturing mobile phones inside Pakistan, there are no big names
Meeting with CEO of Samsung Pakistan
“Launching this program might help us with our economic development”. The Federal Minister, Hammad Azhar announced the setup of Samsung assembly plant in Pakistan after the meeting with Samsung Pakistan’s MD and CEO.
Azhar tweeted that the launch of Device Identification, Registration and Blocking System (DIRBS), and Mobile policy has played a vital role in boosting smartphone production. Furthermore, it has turned out to be one step towards depressing the smuggling of smartphones and featuring a benefit for protecting local smartphone producers.
Smartphone production in Pak is multiplying following DIRBS implementation and Mobile Policy launched recently.— Hammad Azhar (@Hammad_Azhar) August 21, 2020
Met with the Samsung Pakistan MD and CEO. They appreciated both policies and are now actively considering setting up a smartphone assembly plan in Pakistan. pic.twitter.com/8bGBnCWvir
Device Identification, Registration and Blocking System (DIRBS)
With the implementation of DIRBS, only the registered devices are allowed to run in Pakistan. The DIRBS discourages using smuggled mobiles by connecting all mobile devices to local networks using local SIMs. If the user does not register its device within 60 days of using cellular data, the DIRBS blocks the device.
Samsung Pakistan’s MD and CEO highly appreciated policies and put the idea of setting up a production plant in Pakistan into consideration.
A mobile device manufacturing policy was prepared by combine opinions of the Engineering Development Board (EDB), Ministry of Industries and Production (MoIP), and stakeholders of other relevant public and private sectors. Moreover, the policy was approved by the Federal Cabinet in June. To summarize, the main focus of the policy was to create job employment for the local engineers, both semi-skilled and skilled youth.
The idea residing behind the plan was to recognize the human resource as an advantage to increase capitalization. The policy is expected to have a positive effect on the allied industry, including the packaging industry.
This policy will also benefit the public as it will reduce mobile phone prices throughout the country by localization. The government is even thinking of providing incentives & tax breaks to the exporters. The policy was created to promote joint ventures and local & foreign direct investment.
This set up will turn out to be a great success as, according to a survey, it was reported that the demand for affordable, high-quality, and internet-enabled devices has increased with the integration of internet technology into youth’s life. Nearly 40% population with the age 15 own their smartphones.
Earlier this year, Pakistan was the 7th largest importer of smartphones. Recently Bangladesh’s economy has flourished as they have started exporting locally assembled mobile phones to the USA, just like India, Vietnam, and Indonesia.
As stated by the Pakistan Bureau of Statistics that imports of mobile phones reached more than 450 million dollars in the time period from July to November. The promotion of local manufacturing, alongside increasing exports, will help attain BOP (Balance of Payments).