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Thursday, February 15, 2024

Hammad Azhar hopeful smartphones sector will outshine automobile industry

The Federal Minister for Industries and Production appreciates the efforts made by the government to improve the smartphones sector of Pakistan. The Federal Minister is hopeful that one day, the smartphones sector will be bigger than the automobile industry.

Federal Minister for Industries and Production Hammad Azhar expressed the hope that the smartphones manufacturing sector would prove to be even bigger than the automobile industry in Pakistan and in the next 10 years, its export revenues might be equal to the country’s textile sector.

He was addressing as chief guest at the inaugural ceremony of Airlink Smartphone Assembly Line here at Quaid-i-Azam Industrial Estate Kot Lakhpat on Saturday.

Read more: Pakistan welcomes three new mobile manufacturing plants

Airlink Chairman Aslam Hayat Piracha, CEO Muzaffar Hayat Piracha and Engineering Development Board (EDB) Chairman Almas Hyder also spoke on the occasion, while Lahore Chamber of Commerce and Industry (LCCI) President Mian Tariq Misbah and a large number of businessmen and industrialists were also present.

According to the Federal Minister for Industries and Production, PTI’s effective and well-conceived industrial policies were finally resulting in a robust industrial revolution.

He mentioned that when PTI came into government in 2018, around 70 to 80 per cent of smartphones sold in the local markets were smuggled a lot. Curbing mobile phones’ smuggling was a herculean task, he continued, the government studied anti-smuggling strategies of other countries, and introduced DIRBS (Mobile Devices Identification, Registration and Blocking System) under which no mobile phone could be activated in Pakistan without clearing/paying all relevant duties and taxes.

“We have also removed all the reservations and apprehensions of the traders and all other stakeholders in this regard and due to effective policies of the government, there is no smuggled phone in the local markets and the government is collecting 60 to 70 billion rupees duty/tax from mobile phones. These measures also created ample space in the local market for the local manufacturers of smartphones,” he maintained.

Federal Minister added that the government had also introduced the Mobile Phones Manufacturing Policy-2020 and now five major players of this sector were setting up their manufacturing units in Pakistan.

Read more: Policy profiting local mobile phone manufacturers is in the works

“This is our landmark journey and now we are moving from the local market towards export of smartphones,” he said and cited that Vietnam’s annual export revenues from mobile phones export stood at the US $ 45 billion, which forms 25 per cent of its GDP.

Great leaps for Pakistan

Hammad Azhar said that Pakistan’s witnessed eight per cent growth in the large scale manufacturing sector during July 2020-January 2021 and it could become possible due to viable industrial policies of the government.

He mentioned that the PTI government had also introduced Electric Vehicle Policy 2020; gave the biggest relief package for the construction sector and also reduced/abolished duty on a number of industrial raw materials.

Unlike the previous government’s false economic growth through containing dollar rate at Rs 100, he said, the present government was ensuring real economic growth by increasing the agricultural and industrial productions.

Read more: IMF & World Bank Laud Pakistan’s Efforts for Economic Growth & Stability

The government was also facilitating the small industrialists and in collaboration with the State Bank of Pakistan and other banks, the government was going to announce such a package in a month that would bring industrial revolution in the country. He said that the upcoming federal budget would entail reforms in various industrial sectors including the automobile industry.

Hammad Azhar said that industrial expansion in Pakistan was also bringing jobs to hundreds of thousands of individuals thus improving the living standard of many poor families.

Read more: Pak-Chinese companies form joint venture, boosts construction opportunities in Pakistan

He said Airlink had been the biggest importer of mobile phones in Pakistan and today, it had established a state-of-the-art factory with 100 per cent owned equity and a production capacity of six million units per annum.