New financial policies of the government of Pakistan have attracted many international firms to start their business in the country. The latest reports reveal that three of the renowned mobile phone brands that is Samsung, Huawei and Nokia have shown their interest in manufacturing their products inland.
According to media reports, the government has decided to formulate a new mobile phone manufacturing policy that is aimed to attract major brands around the globe. Business Recorder quoted through their sources that M/s Samsung, M/s Huawei and M/s Nokia are likely to start manufacturing in Pakistan due to lower labour cost as compared to China, well-informed sources in EDB told the newspaper.
All three brands have expressed their interest during a meeting held with the officials of Federal Board of Revenue (FBR), Ministry of Information Technology and Telecom, Pakistan Telecommunication Authority (PTA) and Engineering Development Board (EDB). Noman Khalid, Director PTA, informed the participants that due to International Mobile Equipment Identity (IMEI) registration the local manufacturing of mobile devices has increased.
High Labour Costs in China
As per reports, the labour cost in China is significantly higher than that of Pakistan; roughly estimated to CNY 5,000 (PKR 105,000) for unskilled and CNY 20,000 (PKR 420,000) for the experienced technical workforce. Moreover, a mobile device consists of almost 60 sub-parts manufactured by vendor industry/ secondary suppliers that would also suit for the international brands.
Not to mention that due to the initiatives announced by the government of Pakistan back in 2015, currently 23 companies are assembling mobile phones in Pakistan; 15 of those are located in Azad Jammu and Kashmir mainly due to tax holiday offered to industry in AJK.
If the policies become user friendly for the overseas investors, it would certainly create a huge foreign investment creating thousands of employment opportunities for young Pakistanis. Let us hope for the best…