The federal government has recently unveiled plans to invigorate the mobile industry by introducing incentives to boost mobile phone exports. At the behest of the Ministry of IT and Telecom, the Ministry of Industries and Production has formulated a comprehensive new policy dedicated to mobile phones and associated equipment.
Reports indicate that the Engineering Development Board, operating under the Ministry of Industries and Production, is actively crafting the “Mobile Devices and Allied Equipment” policy. This initiative encompasses strategies to foster local manufacturing and enhance the export potential of mobile devices and related equipment.
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During discussions at the SIFC (Strategic Trade Policy Framework) meeting, incentivizing the mobile industry to amplify exports of locally produced mobile phones took center stage. Consequently, the Ministry of IT and Telecom, Ministry of Industries and Production, and Ministry of Commerce have been tasked with devising incentives for the industry within the upcoming mobile phone policy.
Sources within the Ministry of Industries and Production note that the existing mobile device manufacturing policy, operational from 2020 to 2023, is nearing its expiration. A comprehensive review of the current and proposed tariff structures for locally manufactured mobile devices will be conducted as part of the new policy framework. Moreover, the ministry aims to identify specific items and outline tariff structures for allied equipment, such as POS machines, tablets, etc., to bolster the ecosystem.
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The upcoming policy intends to promote local manufacturing of various equipment, including tablets, point-of-sale machines, mobile chargers, Bluetooth hands-free devices, motherboards, plastic components, displays, and batteries. This shift towards local production is anticipated to create employment opportunities within Pakistan while curbing foreign exchange expenditure.
The new mobile policy seeks to establish a framework for Research and Development (R&D) allowance to foster innovation and exports, proposing a range from 3% to 8% for the industry on mobile phone exports. Furthermore, suggestions have been solicited to streamline business operations and alleviate regulatory burdens on the industry.
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The Engineering Development Board is actively developing the new mobile phone policy, initiating consultations with mobile manufacturers on November 10. This collaborative effort aims to gather industry insights and recommendations. The Mobile Manufacturers Association is poised to consolidate proposals from its members by the end of November, contributing to the final policy draft in collaboration with relevant stakeholders and ministries.