Following the relaxation in withholding taxes, three companies have decided to set up manufacturing units in Pakistan and begin locally producing mobile phones.
According to a senior official of the Engineering Development Board (EDB), three new entrants — Vivo, Airlink, and Advance Telecom — have applied to establish production units in Pakistan, and require approvals from the Pakistan Telecommunication Authority (PTA) and the Ministry of Industries and Production (MoIP) for them.
“Vivo plans to set up its unit in Faisalabad, Airlink has applied for a unit in Lahore, whereas Advance Telecom wants to establish one in Karachi,” the official revealed.
The official remarked that the EDB is the policy secretariat for locally manufacturing mobile phones in Pakistan.
An ordinance to abolish the withholding tax on locally manufactured phones was recently promulgated by the government in order to facilitate the assembling and production of mobile parts in Pakistan. This step was highly appreciated by investors.
Amir Allahwala, the Chief Executive of a company that manufactures Infinix and Techno mobile sets said, “Now, after the tax relaxation, there is a difference of around Rs. 1,900 per set between a locally assembled mobile phone and an imported one with a value of $100”.