Cabinet approves first ever Mobile Device Manufacturing Policy

Written by The Frontier Post

F.P. Report

ISLAMABAD: The Federal Cabinet on Tuesday approved the first ever Mobile Device Manufacturing Policy (MDMP) pursuant to a summary moved by Ministry of Industries and Production.

The policy prepared by the Engineering Development Board (EDB), a techno-economic arm of Ministry of Industries and Production through extensive consultation with relevant public and private sector stakeholders, was okayed by the Economic Coordination Committee (ECC) on May 21, a Commerce Ministry press release said.

Minister for Industries and Production Muhammad Hammad Azhar congratulated his ministry’s team and also acknowledged the support from Ministry of Commerce, Ministry of Information Technology and Telecom, Pakistan Telecommunication Authority, Ministry of Planning, Federal Board of Revenue (FBR) and the ECC.

The market carries a potential of over 40 million handsets, which has become a practical possibility especially after the successful launch of Device Identification, Registration and Blocking System (DIRBS), that eliminated smuggling of mobile phones.

The policy aims to incentivize local assemblers who will provide jobs to local engineers, skilled and semi-skilled educated youth. Pakistan is well poised to capitalize the competitive human resource advantage to attract investment in the sector from across the globe. The policy aims at localization/indigenization of the parts of mobile phone in a phased manner.

The prominent features of the policy are the removal of regulatory duty for CKD/SKD manufacturing by the PTA approved manufactures under Input/Output Co-Efficient Organization (IOCO) approved import authorization.

The policy also includes the removal of Fixed Income Tax on CKD/SKD manufacturing of mobile devices up to USD 350 category. The cabinet also approved the increase in fixed Income Tax on USD 351 -500 USD category by Rs 2,000 and USD 500 by Rs 6,300 on CKD/SKD manufacturing only.

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