August 29, 2020 By Admin 2

Samsung Set To Launch Smartphone Assembly Plant In Pakistan

Samsung Set To Launch Smartphone Assembly Plant In Pakistan

According to Federal Minister for Industries and Production Hammad Azhar, leading smartphone company Samsung is set to launch an assembly plant in Pakistan. The minister met with the Samsung Pakistan MD and CEO and discussed future plans. He said that they appreciated the implementation of the Device Identification Registration and Blocking System (DIRBS) as well as the recent Mobile Policy. Due to these advancements, Samsung is now actively considering setting up a smartphone assembly plant in Pakistan.

DIRBS: The implementation of a DIRBS has aided the Pakistan Telecommunication Authority (PTA) in registering all legal mobile devices and thus blocking smuggled phones. Following its implementation, any mobile phone device which is connected to local networks using local SIMs must be registered with the PTA. The time for registration is 60 days, starting from their first use on a local mobile network.

Export in Asia: After Vietnam, India, and Indonesia, Bangladesh has also begun export of locally assembled mobile phones to countries like the USA. Vietnam boasts of mobile phone exports worth over $60 billion whereas India’s mobile phone exports reached $3 billion in 2019. The latter is expected to have a mobile phone export of nearly $110 billion by 2025, creating thousands of jobs. When it comes to manpower, Pakistan’s labor cost is only one-third of the cost in China.

Market for mobile phones: Pakistan is the seventh-largest market for mobile phones. After the introduction of DIRBS in early 2019, over 28.2 million mobile phone devices were legally imported in Pakistan. The country’s manpower cost is reportedly one-third of the Chinese, and it is the seventh-largest market of mobile phones whereas over 12 million devices were assembled in the country as well.

As the penetration of the internet and technology is rising across Pakistan, there is an increased demand for reliable and affordable internet-enabled devices. There are approximately 76 million mobile broadband users in Pakistan, a number that is expected to double and reach 150 million by 2025. Moreover, almost 40% of the population is below the age of 15, and will start looking for their own smartphones in the coming years.

Balancing imports: According to the Pakistan Bureau of Statistics, mobile-phone imports reached half a billion dollars by the end of 2019. If the current pace is maintaine, overall imports per year are expect to be over $1.2 billion. In this case, promoting local manufacturing and industry as well as exporting devices to other countries can balance the burden of imports on the Pakistani economy.

 

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