Oppo allowed manufacturing of mobile phone in Pakistan

Aftab Ahmed

Islamabad: Pakistan Telecommunications Authority (PTA) has issued permission to 19 foreign and local companies including Infinix, Vivo, Oppo for manufacturing mobile phones in Pakistan.

The regulator allows foreign and local companies including Oppo to manufacturing mobile phones in Pakistan and manufacturers will also be able to manufacture mobile devices (2G / 3G / 4G) locally. Following the decision of PTA, Oppo along with companies like infinix are now in Pakistan to start manufacturing mobile phones.

Initially, PTA has granted permission for mobile phone manufacturing in Pakistan that is valid for the next 10 years in Pakistan. However, the manufacturer may also establish its new brand under permission, which will help promote the ‘Made in Pakistan’ culture.

The mobile devices manufactured by these manufacturers will not only be sold in the country but can also be exported to other competitive markets in the region and beyond.

The device manufacturing plants will help provide new employment opportunities and low-cost handsets to Pakistani consumers.

In order to encourage manufacturers to set up their mobile manufacturing plants in Pakistan, the government has introduced a comprehensive and supportive mobile manufacturing policy, which led the PTA to issue the Mobile Device Manufacturing (MDM) Regulation in 2021. This is an important milestone in the journey towards “Digital Pakistan”.

Economic Coordination Committee (ECC), in its meeting held in March this year, had approved the Mobile Device Manufacturing Policy to promote local manufacturing and assembly of mobile phone handsets.

The ECC had approved the removal of Regulatory Duty for CKD/SKD manufacturing by PTA-approved manufactures under input/output Co-Efficient Organization (IOCO) approved import authorization. It also removed fixed Income Tax on CKD/SKD manufacturing of mobile devices up to USD 350 category and increase in Fixed Income Tax on USD 351-500 USD category by Rs 2000 and>USD 500 by Rs.6300 on CKD/SKD manufacturing only.

The ECC had removed fixed Sales Tax on CKD/SKD manufacturing of mobile devices and allowed PTA activation of handsets manufacturing in the country under import authorization of inputs by IOCO in the CKS/SKD kit (8517.1211) and not under HS Code 8517.7000, i.e., parts. It also stressed that the local industry should ensure localization of parts and components as per the roadmap included in the draft policy.

“To promote local manufacturing and assembly, and to discourage smuggling of mobile handsets, Pakistan Telecommunication Authority has prepared draft Mobile Device Manufacturing Regulations and Authorisation Template in the light of Mobile Device Manufacturing Policy issued by the Government of Pakistan on 2nd June 2020,” PTA said in an official statement.

The telecommunication regulator invited telecom consumers, stakeholders, and the public to provide their comments on the draft available at the PTA website link by October 5, 2020. In the case of no feedback, the draft will be final. “PTA has taken substantial steps to promote local manufacturing of handsets.