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Pakistan expects local manufacturing of big cell phone brands after policy change

A shopkeeper repairs a mobile phone at his shop after the government eased the nationwide lockdown imposed as a preventive measure against the COVID-19 coronavirus, in Rawalpindi on May 11, 2020. (AFP)
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Updated 26 May 2020
Khurshid Ahmed
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Pakistan expects local manufacturing of big cell phone brands after policy change

  • Arrival of high-end brands will give local industry opportunity to become part of global value chain
  • Local manufacturing of handsets will create more employment opportunities, reduce outflow of foreign exchange
Updated 26 May 2020
Khurshid Ahmed

KARACHI: Pakistan expects local manufacturing of major cell phone brands following the approval of the first Mobile Device Manufacturing Policy, officials and manufacturers said on Monday.

“Some big brands got in touch with us when they discovered that we were working on the policy. Hopefully, one of them will come to Pakistan within a year,” Pervaiz Iftikhar, who is part of Prime Minister’s Taskforce on IT and Telecom, told Arab News.

“Ultimately big brands will come to Pakistan, though it will not happen immediately since high-profile companies normally take time to make such decisions,” he said while declining to name the brands that have shown interest in manufacturing in Pakistan.

Global brands like Nokia representatives in Pakistan say they are monitoring the industrial situation and government regulations closely.

“We have prepared a proposal in the context of this development. However, global companies do not take decisions very quickly, especially when they involve setting up operations somewhere,” Arif Shafique, HMD Global Country Head for Pakistan and Afghanistan, told Arab News.

Pakistan approved the mobile manufacturing policy to encourage local production of handsets on Thursday, hoping it would also have a positive impact on allied industries.

The new policy is designed to attract high-end brands that will help the local industry become part of the global value chain.

The policy seeks to set up research and development centers and create an elaborate ecosystem for software applications. Various tax incentives have been given to manufacturers for local production.

With a population of 220 million people, Pakistan’s telecom sector offers attractive investment opportunities since it boasts of 165 million mobile phone subscribers with 76 million 3G-4G users, according to the Pakistan Telecommunication Authority (PTA).

The authority has already issued licenses to some 29 mobile manufacturers for the production of handsets.

“Out of 29 licensees, 18 have started manufacturing and are mainly assembling 2G mobile sets,” Aamir Allawala, CEO of Transsion Tecno, a joint venture between Transsion Holdings China and Tecno Pack Pakistan, told Arab News.

The joint venture company is the first to start manufacturing 3G and 4G smartphones in Pakistan. It produces Infinix, Tecno and Itel brands in its Karachi facility and has sold 500,000 units since February 2020.

“The country produces around 12 million handsets annually against the market size of 40 million units. About 28 million sets are also imported annually,” Allawala said.

“Local production figures will more than double in the coming days if the expected investments are made,” Pervaiz Iftikhar said.

The country meets a chunk of its mobile phone demand by importing handsets which adds to its deficit. During the last fiscal year, Pakistan imported mobile phones worth $755.5 million, but the import of these devices increased by 63 percent to $1 billion during July-April period of the current financial year.

“Previously, duties and tariffs did not make local manufacturing a viable option,” Allawala said. “That made the import of handsets more feasible. However, this is likely to change with the introduction of the new policy.”

Manufacturers say this labor-intensive industry has a potential to create 200,000 jobs, and the 49 percent localization of parts within the next three years is likely to help the country export mobile phones.

“It will also reduce the burden on the country’s forex reserves,” Allawala added.

However, some industry players emphasized the importance of keeping the policy consistent.

“It takes high investment to assemble smart phones. When such investments are made, governments take U-turns and implement new policies or impose new duties and taxes,” Imran Ghani, CEO of Tri-Angels Electronics that manufactures Hisense TV in Pakistan and intends to make smartphones, told Arab News.

Local manufacturing was of cellphones was encouraged after Pakistan implemented its Device Identification, Registration and Blocking System (DIRBS) in 2018 to control the smuggling of mobile phone devices through the registration of International Mobile Equipment Identity (IMEI). The move not only resulted in the growth of local manufacturing but also encouraged imports through legal channels.

Topics: cellphone brands Pakistan Telecom

Authorities evacuate over 50 people from remote Pakistan district hit by sectarian clashes

Updated 18 sec ago
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Authorities evacuate over 50 people from remote Pakistan district hit by sectarian clashes

  • Clashes between Sunni, Shia tribes have killed over 100 people in Kurram since last month
  • On Friday, authorities set a deadline of Feb. 1 for the warring tribes to surrender weapons
Updated 18 sec ago
REHMAT MEHSUD

PESHAWAR: More than 50 injured and ailing persons were evacuated on Saturday from the northwestern Pakistani district of Kurram, which has been hit by sectarian clashes in recent weeks, to Peshawar, provincial capital of the Khyber Pakhtunkhwa province, disaster management authorities said.
Kurram, a tribal district of around 600,000 near Pakistan’s border with Afghanistan where federal and provincial authorities have traditionally exerted limited control, has been a flashpoint for sectarian tensions between Shia and Sunni tribes for decades.
Fresh clashes last month killed more than a hundred people, triggering a humanitarian crisis with reports of starvation, lack of medicine and oxygen shortages following the blocking of the main highway connecting Kurram’s main city of Parachinar to the provincial capital of Peshawar.
The injured and ailing persons were airlifted through helicopters from Kurram and safely transported to Peshawar on the instructions of KP Chief Minister Ali Amin Gandapur, according to the Provincial Disaster Management Authority (PDMA).
“Fifty-three affected people, including 14 patients, were brought to Peshawar by helicopter from Kurram district,” the PDMA said in a statement.
“The Khyber Pakhtunkhwa Relief, Rehabilitation & Settlement Department has declared an emergency for relief activities in Kurram district in view of the prevailing situation. An emergency cell has been set up to safely transfer the affected people to hospitals in Peshawar.”
The PDMA said it was in touch with the Kurram district administration and utilizing all resources in this regard, adding that people could contact its emergency operations center at helpline 1700 for any information or guidance.
The development came a day after KP authorities set a deadline of Feb. 1 for warring Sunni and Shia tribes in the district to surrender all weapons and dismantle their bunkers to stem sectarian clashes in the region.
The decision was made at a meeting of the KP apex committee, which comprises civilian and military officials, to discuss a sustainable solution to the issue. It allowed the launch of a special air service for temporary evacuation from some parts of Kurram to protect people’s lives, according to the apex committee declaration.
“The agreement outlines that both sides will submit a detailed action plan within 15 days for voluntary submission of weapons,” read a declaration issued after the apex committee meeting.
“All weapons are to be deposited with the local administration by February 1. Additionally, it was decided that all bunkers in the area will be dismantled by the same deadline.”
In the meantime, land routes to the area would be opened intermittently on humanitarian grounds and a mechanism was put in place for secure transportation, according to the statement.
“Personnel of police and Frontier Corps will jointly provide security to the convoys,” it read.
Last month’s clashes erupted after rival tribes attacked convoys of passengers on the Parachinar-Peshawar road, which were followed by attacks on each other’s villages.
The apex committee asked both sides to avoid any violent action in the future to keep the land route safe and open at all times, hoping that the parties would fully cooperate with the government for a lasting solution to the issue.

Topics: kurram kurram district sectarian clashes militancy in Pakistan

Pakistan PM directs measures to increase sugar industry revenues, end hoarding

Updated 21 December 2024
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Pakistan PM directs measures to increase sugar industry revenues, end hoarding

  • Sugar remains one of the largest consumed food commodities in the South Asian country
  • PM Sharif says government making efforts to ensure supply of sugar at affordable prices
Updated 21 December 2024
Arab News Pakistan

ISLAMABAD: Prime Minister Shehbaz Sharif has asked officials to take steps to increase revenue collection from the sugar industry and to end hoarding of the commodity, Sharif’s office said on Saturday.
The prime minister issued the directives at a meeting he presided over in Lahore to review the implementation of a strategy to improve revenue collection.
Sugar remains one of the largest consumed food commodities in the South Asian country and is used in large amounts in food processing, beverages, and bakery items.
Owing to its huge demand, the government sets its procurement prices while the sugar industry is protected by a 40 percent import tariff to ensure prices remain stable. 
“Revenue collection will improve after the installation of video analytics in the sugar industry,” Sharif was quoted as saying by his office. “These reforms will end sugar hoarding and help balance prices.”
The prime minister said the government was making all efforts to ensure the supply of sugar at affordable prices.
“Regular monitoring of sugar stocks should be carried out so that the sugar supply chain is not affected,” he instructed officials, calling for strict and indiscriminate action against sugar mills that were evading taxes.
Over the decades, Pakistan has failed to generate tax revenues in higher amounts due to a narrow tax base, low compliance rate, an inefficient tax administration and massive tax evasion.
The South Asian country has set an ambitious target of collecting $46 billion through taxes this financial year (July 2024 till June 2025), amid efforts to revive its fragile $350 billion economy.

Topics: Sugar export sugar industry Pakistan Prime Minister Shehbaz Sharif

Pakistan rejects US allegations over missile program as ‘devoid of rationality’

Updated 21 December 2024
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Pakistan rejects US allegations over missile program as ‘devoid of rationality’

  • A senior US official this week said Pakistan was developing long-range missiles that could threaten the US
  • The statement came after Washington said it was imposing new sanctions related to Pakistan’s missile program
Updated 21 December 2024
KASHIF IMRAN

ISLAMABAD: Pakistan’s Foreign Office on Saturday dismissed as “unfounded” and “devoid of rationality” the allegations by a senior United States (US) official that its missile program posed a threat to the United States.
The Foreign Office statement came in response to comments made by US Deputy National Security Adviser Jon Finer, who said nuclear-armed Pakistan’s development of long-range ballistic missiles could potentially target the US.
The statement came after the US said it was imposing new sanctions related to Pakistan’s missile program, including on the state-owned defense agency that oversees the program. The sanctions freeze any US property belonging to the targeted entities and bars Americans from doing business with them.
The Foreign Office said that Pakistan had made it abundantly clear that its strategic program and allied capabilities were meant to thwart a “clear and visible existential threat from our neighborhood” — a reference to arch-foe India — and should not be perceived as a threat to any other country.
“The alleged threat perception from Pakistan’s missile capabilities and delivery means, raised by the US official are unfortunate. These allegations are unfounded, devoid of rationality and sense of history,” the Foreign Office said in a statement.
“Since 1954, Pakistan and the US have enjoyed a positive and broad-ranging relationship. The recent spate of US allegations toward a major non-NATO ally would be unhelpful for the overall relationship, especially in the absence of any evidence in this regard. Pakistan has never had any ill-intention toward the US in any form or manner, and this fundamental reality has not changed.”
Finer’s statement underscored how far the once-close ties between Washington and Islamabad had deteriorated since the 2021 US troop withdrawal from Afghanistan. It also raised questions about whether Pakistan has shifted the objectives of nuclear weapons and ballistic missile programs long intended to counter those of India, with which it has fought three major wars since 1947.
But the Foreign Office said Pakistan’s strategic capabilities were solely meant to defend its sovereignty, highlighting Pakistan’s long history of cooperation with the US, particularly in the counter-terrorism domain.
“We wish to reiterate that Pakistan’s strategic capabilities are meant to defend its sovereignty and preserve peace and stability in South Asia,” it said.
“Pakistan cannot abdicate its right to develop capabilities that commensurate with the need to maintain credible minimum deterrence as well as evolving and dynamic threats.”
Relations between the US and Pakistan have seen significant ups and downs. The countries collaborated during the Cold War and in the fight against Al-Qaeda after 9/11.
However, ties have been strained due to coups in the South Asian country by Pakistan’s military, support for the Taliban’s 1996-2001 rule in Afghanistan, and over the nuclear weapons program.

Topics: Pakistan US Ties Pakistan missile program Foreign Office Pakistan's foreign office

Islamabad urges Afghanistan to boost border security as infiltration attempt kills five

Updated 21 December 2024
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Islamabad urges Afghanistan to boost border security as infiltration attempt kills five

  • Military says four TTP fighters and a soldier were killed as militants tried to enter Pakistani territory
  • Statement comes after media reported a deadly attack on a military outpost that killed 16 soldiers
Updated 21 December 2024
Arab News Pakistan

ISLAMABAD: The Pakistan military on Saturday urged the Taliban administration in Kabul to ensure robust border management after a group of militants tried to infiltrate from Afghanistan, leading to a skirmish that left four infiltrators and a soldier dead.
Relations between Islamabad and Kabul have deteriorated in recent years as militant violence surged in Pakistan, fueled by attacks from Tehreek-e-Taliban Pakistan (TTP) militants in the northwestern Khyber Pakhtunkhwa province.
Pakistani officials blame the TTP for the escalating violence, accusing the Afghan authorities of turning a blind eye to militants using their territory to launch cross-border attacks.
However, Kabul denies these allegations, insisting that Pakistan’s internal security is its own responsibility.
“On night 19/20 December, movement of a group of khwarij [TTP militants], trying to infiltrate through Pakistan-Afghanistan border, was picked up by the security forces in general area Rajgal, Khyber District,” the military’s media wing, Inter-Services Public Relations, said in a statement. “Own troops effectively engaged and thwarted their attempt to infiltrate. Resultantly, four Khwarij were sent to hell.”
The statement noted that one of the soldiers, Sepoy Amir Sohail Afridi, also lost his life amid intense exchange of fire.
“Pakistan has consistently been asking Interim Afghan Government to ensure effective border management on their side of the border,” it continued. “Interim Afghan Government is expected to fulfil its obligations and deny the use of Afghan soil by Khwarij for perpetuating acts of terrorism against Pakistan.”
The ISPR statement comes after media reported a deadly attack on a military outpost in Khyber Pakhtunkhwa which was targeted by 30 militants from three sides. According to anonymous intelligence sources, the attack left 16 soldiers dead. The TTP claimed responsibility for targeting the outpost in a statement that described the attack as a retaliation to the recent killings of its top commanders.
The Pakistan military reiterated in its statement it remained committed to securing the borders. It added that its soldiers would also fight to eliminate the menace of militant violence.

Topics: Pakistan Afghanistan border Pakistan Afghanistan Ties militancy in Pakistan Tehreek e Taliban Pakistan

Pakistan Taliban claim raid killing 16 soldiers in northwestern province

Updated 21 December 2024
AFP
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Pakistan Taliban claim raid killing 16 soldiers in northwestern province

  • Officials confirm privately militants set fire to the wireless communication equipment, documents
  • Pakistan’s military has not issued a statement on the siege of its outpost that lasted for two hours
Updated 21 December 2024
AFP

ISLAMABAD: The Pakistani Taliban claimed a brazen overnight raid on an army outpost near the border with Afghanistan on Saturday, which intelligence officials said killed 16 soldiers and critically wounded five more.
The siege started after midnight and lasted about two hours as around 30 militants pummelled the mountainous outpost from three sides, one senior intelligence official told AFP on condition of anonymity.
“Sixteen soldiers were martyred and five were critically injured in the assault,” he said. “The militants set fire to the wireless communication equipment, documents and other items present at the checkpoint.”
A second intelligence official also anonymously confirmed the toll of dead and wounded in the attack in the Makeen area of Khyber Pakhtunkhwa province, 40 kilometers (24 miles) from the Afghan border.
Pakistan’s domestic chapter of the Taliban claimed the attack in a statement, saying it was staged “in retaliation for the martyrdom of our senior commanders.”
The group claimed to have seized a hoard of military gear including machine guns and a night vision device.
Pakistan’s military has not yet issued a statement on the incident.
Pakistan has been battling a resurgence of militant violence in its western border regions since the Taliban’s 2021 return to power in Afghanistan.
Islamabad accuses Kabul’s rulers of failing to root out militants staging attacks on Pakistan from over the border.
The Pakistani Taliban — known as Tehreek-e-Taliban Pakistan (TTP) — share a common ideology with their Afghan counterparts who surged back to power three years ago.
Kabul’s new rulers have pledged to evict foreign militant groups from Afghan soil.
But a UN Security Council report in July estimated up to 6,500 TTP fighters are based there — and said “the Taliban do not conceive of TTP as a terrorist group.”
The report said the Afghan Taliban show “ad hoc support to, and tolerance of, TTP operations, including the supplying of weapons and permission for training.”
The spike in attacks has soured Islamabad-Kabul relations. Security was cited as one reason for Pakistan’s campaign last year to evict hundreds of thousands of undocumented Afghan migrants.
 

Topics: Pakistan attack Militant attack Arab News Pakistan

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