Mobile Phone Dealers Threaten Strike Over Used Phone Policy

Mobile phone dealers have threatened to go on a shutter down strike if the Federal government fails to issue an SRO for the registration of used mobile phones in Pakistan. They claim that about 95 percent of smartphones used in Pakistan are second-hand.

This was demanded by Karachi Electronics Dealers Association (KEDA) President Muhammad Rizwan in a media conference at his office on Tuesday.

In a meeting with Minister of State for Revenue Hammad Azhar and Muhammad Rizwan, it was decided that the government will allow the import of used mobiles. The Federal Board of Revenue (FBR) announced that old Mobile Phones can be registered until December 31, 2018. But the government is still unable to issue any SRO to regulate used phones in this regard. He confessed that these phones were not brought via legal import.

“Mobile phones worth millions of rupees are stuck and this is causing a problem import of used mobile phones,” Rizwan said.

He presented the following demands:

  1. The government should consider extending the deadline for the legalization of used mobile handsets.
  2. The government should allow GSMA approved handsets to work normally instead of requiring a type approval from PTA.
  3. The implementation of DIRBS is stopped until the approval of a new law.

He said that if the government does not fulfill the demands of traders they will go on a shutter down strike not only in Karachi but all over Pakistan.

According to Rizwan, in Pakistan, about 95 percent mobiles in use are second-hand. And with the government banning these mobile phones, it will deprive the common people with a basic necessity.

Valuation of Old Phones

In Pakistan, only packaged mobile phones can be imported legally and the current government has imposed several duties to curb illegal and used mobile phone smuggling in the country. After the implementation of an IMEI ban handsets brought via other means will not be usable.

Muhammad Rizwan said that KEDA sent a proposal to Pakistan Customs about the valuation of used phones. KEDA proposed that the imposed customs duty on 6-month-old mobile phones should be reduced by 60 percent and on 8-month-old handsets by 80 percent. Customs authorities can track the handset manufacturing date themselves.

  • Simple Policy Banani Chahyeh thi :

    Mobile Owner Ship Ki
    Ek CNIC Pe 5 Mobile Are Allowed (Any Type Brand Mobile Until to Sold to Another Person)
    PTA Authorized Kar De Mobile Shop Wale Ko
    Mobile Owner Mobile K Sath Jaye Shop Pe BioMetric K Sath OwnerShip Apne Naam Kare

    New Ho Ya Old OtherWise Blocked Kijyeh

  • 100% agreed on
    The government should allow GSMA approved handsets to work normally instead of requiring a type approval from PTA.

    • I think the government is doing thr right thing. They said that 95% of the phones are imported second hand(illegaly). But he forgot to mention that then these phones are then repacked and sold as “new” at the original rate or 5-10% less rate. Same story with the refurbished phones.

  • propakistani has no article regarding impact on high duties on the phones … see this from techjuice pk “Vivo is investing $560 million to expand its existing facility in Delhi, India from 50-acre to 169-acre. A new manufacturing plant will also be built in the facility, drastically improving the production capabilities of Vivo in India.
    The new manufacturing plant will create over 5,000 jobs at the start and will increase the production capacity of Vivo from 2 million smartphones per year to 50 million.
    A worrying outlook for Pakistan
    On the other hand, Pakistan has yet to push the local production of smartphones. Even with the vast amount of cheap labor readily accessible to investors, smartphone companies are still reluctant to set up their manufacturing facilities in Pakistan. When we dive a bit into the problem, there are a number of reasons which are making them reluctant to invest in local manufacturing plants. Issues like confusing tax structure, high tariffs on imports, less than admirable law and order situation, power supply issues, and rampant corruption faced by any new business starting in the country are a few issues which need to be immediately addressed.

    Pakistan has a large and growing smartphone market. With more than 34 percent smartphone penetration in a huge population of over 200 million, it is a big market for companies like Vivo, Huawei, Samsung, and Nokia. But, unfortunately, we are still unable to convince them to open local manufacturing plants in Pakistan, leading to a huge import bill which is burdening the economy instead of creating new jobs and increasing investment like we have seen happening time and time again in India.
    Instead, with the increased duties on imported phones, and no locally manufactured phones in sight any time soon, Pakistan is only increasing the burden on its existing smartphone market, instead of fostering and growing it to make it more enticing for smartphone manufacturers.”

    • To be fair high tax on imports is the reason for thr setup of these plants in India. While Pakistan is failing to attract the investment due to low smartphone sales through official channels. If government implements DIRBS to stop illegal imports and give tax incentives to the smartphone manufacturers they will consider opening an assembling plant here.

      • nope not that alone… the reason was in order to sell products in India directly they had to source materials from India. India even went far ahead to ban used mobile imports. even if phone companies start assembling phones in Pakistan, Pakistanis will still be crying like a donkey that all mobile phone assemblers are offering expensive priced local assembled phones with inferior quality. If the government is serious they should offer tax breaks for land plus zero tax importation of machinery to make phones in Pakistan.

      • Very true. Also PTA and the Government should not listen to these Looters like (KEDA) President Muhammad Rizwan. Who are involved in bringing second hand/Refurbished phones and repackaging them to sell them to customers saying they are brand new…. These guys are also support illegal activities like IMEI duplications and what not. Only new phones should be allowed to be imported and 2nd hand phones should be easy to import for direct customers only.

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