Today we have a piece of big news for Pakistan. Samsung is setting local assembly plant in Pakistan. This cellphone manufacturing assembly will boost the economy and may probably enhance job opportunities for the workers. Moreover, it might affect the prices also and in a good way.
Investors For Establishing Local Assembly Plant
According to the news. Samsung is in talks with investors for establishing the local assembly plant in Pakistan for smartphones. Three investors will take part in this process.
One of those parties is from South Korea. South Korean company has already participated in the vehicle establishment under the Auto Development Policy 2016-2021. This is the reason Samsung has a comfort zone with Koreans. You will get to know about two other investors soon.
Details Of The Plan
Furthermore. Some resources reveal that the local assembly of the cellphone will start in the last quarter of this year.
From March to June 2021. About 21 companies have received mobile phone manufacturing authorization under the Engineering Development Board (EDB), an arm of the Ministry of Industries and Production (MoIP), that approved the Mobile Device Manufacturing Policy (MDMP) in 2020.
Under the approved Mobile Device Manufacturing Policy, many foreigners are developing keen interests in manufacturing cellphone units in Pakistan. Due to this policy, the products will be tagged ‘made in Pakistan’, and imports will be discouraged.
As per the Engineering Development Board, the factories may be located in the following cities. Karachi, Lahore, Rawalpindi, Faisalabad, and Islamabad. Some brand names include Nokia, Oppo, Infinix, Tecno, Itel, Vivo, Alpha, Realme, Calme, Spice, etc.
Moreover. The reports from the Pakistan Bureau of Statistics suggest cell phone imports increased from 63pc to $1.860 billion in 11MFY21. The imports were about $1.138bn at the same time last year.
Additionally, The economic survey results indicate that the telecom sector has received $3.9 billion of Foreign Direct Investment (FDI) from July 2012 to February 2021. There was a $101 million investment during the period of July-February 2021 period, and $363.9m during July-December FY21.
After the Samsung local assembly plant, more investment is expected which will encourage other foreign companies to participate. This step will encourage local assemblers to provide job opportunities to skilled workers and engineers.