Key Takeaways
- Pakistan invites Samsung to establish a regional hub for manufacturing and exporting mobile phones.
- The government aims to increase value addition and expand industrial production through this initiative.
- Samsung seeks to create export opportunities, particularly in Africa.
Pakistan has extended an invitation to South Korean electronics giant Samsung to set up the country as a regional hub for manufacturing, refurbishing, and exporting mobile phones. This move was discussed during a meeting between Commerce Minister Jam Kamal Khan and a delegation led by Samsung Pakistan’s Country Head at the Ministry of Commerce on Wednesday.
During the meeting, the minister assured Samsung of full government support in facilitating investment aimed at boosting exports and increasing value addition within the local industry. He encouraged the company to look beyond Pakistan's domestic market and export locally manufactured smartphones to emerging markets, particularly focusing on Africa and other regions.
Minister Kamal highlighted that Pakistan should leverage its growing manufacturing base to become part of global supply chains rather than serving only local demand. This initiative aligns with the government’s broader strategy to enhance industrial production and create more export opportunities for Pakistani products.
The Samsung delegation provided an update on the progress of Pakistan's mobile phone manufacturing sector, emphasizing the company's investment in local assembly. They also discussed changes to the taxation structure, noting that the narrowing of the tariff differential between Semi Knocked Down (SKD) and Completely Built Units (CBU) had significantly reduced the competitiveness of locally manufactured phones.
Samsung expressed concerns over the commercial import of used mobile phones, stating that it undermines domestic manufacturing despite Pakistan having sufficient production capacity. The company requested that the government maintain a reasonable tariff differential to encourage continued investment in local manufacturing.
The minister appreciated Samsung’s proposal to establish certified mobile phone refurbishment facilities in Pakistan. He noted that such a regulated ecosystem would strengthen local industry and create export opportunities for professionally refurbished devices, while generating employment and promoting technical expertise.
This collaboration is expected to bring significant benefits to both parties. For Samsung, it offers access to new markets and the potential to increase its global market share through exports from Pakistan. For Pakistan, it represents an opportunity to boost local manufacturing, create jobs, and integrate more deeply into international supply chains.
The minister assured the company of the government’s full support in facilitating investment aimed at boosting exports, increasing value addition, and expanding industrial production.
Jam Kamal Khan, Commerce Minister
We appreciate Samsung's proposal to establish certified mobile phone refurbishment facilities in Pakistan. Such a regulated ecosystem would strengthen local industry and create export opportunities for professionally refurbished devices, while generating employment and promoting technical expertise.
Jam Kamal Khan, Commerce Minister
