Smartphone manufacturing companies Samsung and Oppo are likely to start assembling mobile phones in Pakistan soon after the removal of sales tax, worth more than $200 USD, on locally assembled phones.
According to reports, Samsung and Oppo are keen to enter the local market, but they are waiting for the implementation of a policy that will remove sales tax on locally assembled mobiles.
The Mobile Device Manufacturing Policy 2020 was approved by the Economic Corridor Committee (ECC) in May 2020. The decision was subsequently approved by the Cabinet on June 2, 2020.
Companies like Vivo, Airlink Communications, Invovi Telecom are new investors in the Pakistani market, and they have already started local assembly trial productions of mobile phones in February 2021.
Together, these companies can produce over one million handsets per month. Besides, Karachi-base company Tecno has increased local mobile assembly form 150,000 to 650,000 cellphone units per month due to the increase in demand.
With experienced companies like G-Five and Q Mobile already operating in the Pakistani market, the entry of new players and capacity enhancement by existing companies will allow Pakistan to meet a major portion of the local demand, which was around 3.6 million per month in 2020.
In foreseeable future, the mobile production industry will likely become larger than the automotive industry of Pakistan.
To further boost the electronics sector, work has already been started on preparing the appropriate framework for local assembly of tablets and mobile accessories to make this the fastest growing sector in terms of employment and exports.