Cellphone imports plunge 73pc

Published December 8, 2021
Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin addresses a press conference alongside PM’s Adv­iser on Commerce Abdul Razak Dawood in Islamabad on Friday. — PID/File
Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin addresses a press conference alongside PM’s Adv­iser on Commerce Abdul Razak Dawood in Islamabad on Friday. — PID/File

ISLAMABAD: The import of manufactured or completely built units (CBU) declined by 73 per cent year-on-year to $179 million in the first five months of the current fiscal year from $661m a year ago.

The drop helped save $410m in foreign exchange for the country owing to the implementation of the mobile manufacturing policy, Adviser on Commerce Razak Dawood said on Tuesday.

In contrast, the import of mobile phone components for local assembly increased by 407pc to $674m from $133m last year. He further said locally assembled mobile phones are cheaper than $200 as a result of this policy.

Local mobile phone assembly picks up pace

In Pakistan, about 80pc to 85pc of the market is for phones priced at $200 or below. As a result of the mobile policy – which contains duty incentives for enhancing mobile phone assembling in the country – majority of phones under $200 are now being assembled in Pakistan.

In terms of market shares, the Chinese manufacturers control about half of the market as they were quick to utilise the incentives offered by the government and hence have the “First-Mover’s advantage” in the market.

These assemblers are importing mobiles in semi-knocked down condition which are then assembled in Pakistan. This is not only saving foreign exchange but also boosting industrial activity and creating employment. Mr Dawood said Sams­ung has also recently started assembling mobile phones in Pakistan.

“All over the world, smartphones have now become a necessity as many SMEs now run their businesses on mobile phones. At the start of this government, Pakistan was a net importer of mobile phones but the situation has now been reversed and jobs are also being created in this sector,” the adviser said.

“Our vision is to make Pakistan a hub of mobile phone manufacturing and export. The export of mobile phones will soon start that will earn foreign exchange for the country,” Mr Dawood added.

Published in Dawn, December 8th, 2021

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...