5 Mobile Phone Companies to Set Up Assembly Lines in Pakistan

Five companies have submitted applications to establish mobile phone assembly lines in Pakistan. Once authorized, the move will attract Foreign Direct Investment (FDI) of billions of dollars. It will also help decrease imports which continue to along with fiscal trade deficit.

The Companies

The companies that are seeking government’s approval to establish assembly lines are:

  • Haier
  • Mobo Mobiles
  • G5
  • Foxconn and
  • Jio Phone

Pakistan Telecommunication Authority (PTA) is hoping that companies will start operations soon. An official from the authority said, “We expect these companies to start manufacturing mobile phones in their plants soon.”

Recognizing the growing market he said,

Mobile phone users in Pakistan are fast shifting to hi-tech products; of the 24 million mobile sets being imported in a year, almost half are smartphones.

Guidelines were issued by PTA to attract foreign investments from mobile companies. This is an attempt to bring down the prices of smartphones as their demand is continuously increasing.

Assembled in Pakistan

Until now, China has been home to big companies’ assembly lines like thanks to its cheap labor. This has added a significant amount to the country’s economy, however, as the exports have increased in China, prices of labor have also gone up. As a result, companies are now looking for other similar markets like Pakistan and India.

Most popular brands have already established assembly lines in India during the past few years.

Samsung was contacted by Pakistan in a similar attempt to bring in investments, however, one of their officials replied to the email saying,

The government should frame a policy to provide incentives to the brands establishing assembly lines in Pakistan.

Samsung’s reply clearly mentions that Pakistan needs to bring a new policy to support multi-national brands. Something akin to the Auto Policy could also help these smartphone manufacturers in setting up new assembly lines.

Until now, there are no rules and regulations which can prevent infringement and cheap copies in Pakistan. We recently saw that Nokia’snew 3310 was copied by a local brand even before its launch. Something similar was seen in the case of Samsung’s Galaxy S8.

On the other hand, PTA has clearly directed all companies to put “Assembled in Pakistan” on all devices that will be assembled in the country.

Read More: Customs Recover Over 80,000 Smuggled Phones

Guidelines by PTA

PTA has given some relief to the new companies as they will be issued No-objection certificate (NOC) for the first six months. However, after this period, PTA will perform thorough examination to ensure that international standards are being followed. A PTA official says,

“After evaluation and verification, the PTA will issue formal no-objection certificates following inspection of the assembly lines keeping in view the health, safety and technical standards.”

This will also help in decreasing mobile phone smuggling as around $1 billion worth of phones are smuggled into the country every year.

Via: Tribune

      • Foxconn ek bada naam hai
        Foxconn is primarily a contract manufacturer; clients include major American, Canadian, Chinese, Finnish, and Japanese electronics and information technology companies. Notable customers and products the company manufactures for include BlackBerry, iPad, iPhone, iPod, Kindle, Nintendo 3DS, Nokia, PlayStation 3, PlayStation 4, Wii U, and Xbox One.

        • Haier is sh** in quality in Pakistan. In China they are known to have good quality but in Pakistan they use cheap practices and inferior quality materials. ask any electronics store or user of haier Pakistan products. even their facebook is filled with complaints about their phones.

    • Foxconn was one of the vendors of Apple. I doubt they would start any plants in Pakistan as they have already invested significantly in India, Philippines. There were plans of setting up a manufacturing plant in one of the ASEAN countries.
      Jio phone I guess belongs to India. There were plans of setting up an assembly plant in Bangladesh. I doubt Pakistan would be considered.
      G5 has plans in ASEAN countries, again I suspect they would not be interested in South Asian countries.

  • I would still prefer made in China. The reason is automation. Chinese now only use machines they have stopped using labor for many tasks and thus the quality has improved.

    • yes IPhone foxconn ne bnaya he magar iska matlab yeh nhi k ab iphone pakistan mein bne ga..

      Foxconn mobile manufactured company he na k mobile seller..

      tamam big company foxconn ki customer he like,

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  • lol FDI of billions of dollars – by these tiny pint sized midget companies? Our govt is so cute. I guess they think that Samsung shall manufacture its AMOLEDs here.
    And Qmobile shall start its plant? Really? Its just a reseller. Does not even manufacture its own chargers. How exactly shall it assemble OEM phones which are already finished products? Perhaps, they will put their stickers and call it assembly plant lol. btw, they are smuggling phones and were recently caught red handed. Expecting investment from those thieves is hilarious.

  • Foxconn is huge brand of wold electronics including PCs and Mobiles. It will be very huge success if Foxconn came to Pakistan.

  • JIO is the Indian one owned by Ambani group the same group which reportedly has major shares in GEO Tv channel of Pakistan.
    Next, The assembly of mobiles -instead of manufacturing- will bring a lot of profit to the Co: concerned. So if the companies are allowed to take out the same in forex then is it not loss making venture unless they are restricted up to a certain percentage say 25)that can be taken out and the remainingy amount be spent here

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