Mobile companies are set up production units in Pakistan

Following recent state-owned tax withholding relaxations, there has been interesting from three telecommunications companies called Vivo mobile, Airlink, and Advance Telecom in developing mobile manufacturing units in Pakistan.


The Government recently ordered the demolition of WHT on local mobile devices in an attempt to promote the implementation and eventual development of components in the region.

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Investors commended the measure taken by the government to prohibit retention tax on locally manufactured sets, as the imported sets were inexpensive as those produced under the previous regime.


Three new entrants have submitted applications for the construction of production units within the region," said the Engineering Development Board Official (EDB), an affiliated Ministry of Industry and Development department. 'Airlink has applied for a Lahore unit, while Advance Telecom is planning on building one in Karachi.'


Investors welcomed the government's reform as imports became cheaper than under the previous system. The CEO of an Infinix and Techno sets firm, Amir Allahwala said in this connection that "after-tax relief, the difference between a local mobile phone and an import phone with a price of $100 is approximately PKR1 900 per set."

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The suppliers shall comply with the specifications set by the Govt at the end of the second year of production/assembly. The PTA strategy forecasts the production locally of 2% of chargers and 1% of Bluetooth hands-free devices of the assembled devices.


The PTA takes responsibility for the quality and control monitoring of all locally-assembled equipment and components.

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