Archive for August 9th, 2007

Incentives for Manufacture of Telecom Equipment in Pakistan

Published by Babar Bhatti on August 9, 2007 under Companies, Foreign Investment, Government Regulations, Infrastructure, Investment, Pakistan, Telecommunications, mobile phones

With the hundreds of millions of foreign exchange being spent on import of mobile phones and equipment in Pakistan, its good to hear that the government is about to take some solid action. This issue has come up in discussions many times here and we will continue our reviews once more information is available about this plan.

Reported in the Daily Times today.

The government will soon offer a 10-point incentive package to foreign investors for manufacturing telecom equipment in Pakistan to save foreign exchange, a senior official said Wednesday.

The official from the Telecommunication Ministry said consultations have been held with foreign investors and a special committee is finalising a package in the light of their suggestions.

“The incentive package will be announced soon after its approval at the highest level,” he said, pointing out that if the plan was implemented it would be first time telecom equipment including mobile sets would be manufactured locally.

“The incentives will include duty free import of machinery, smooth availability of raw material, reduction in corporate taxes, concession in power supply rates, human resource development, consistency in policies and other measures,” said the official.

According to statistics, telecom equipment worth around $1 billion was imported by Pakistan during fiscal 2006-07, 26.7 percent more than the imports during the year before that.

Imports of mobile phones alone amounted to $506 million during July to March in the last fiscal year, showing an increase of 26 percent over imports in the corresponding period during 2005-06.

The official said a Centre would be established in Islamabad at a cost of $4.5 million to develop human resource to cater to the needs of manufacturing of equipment in the telecom sector.

He said Nokia has already established a testing facility and similarly facilities would be set up at other places across the country.

The official said the ministry has also evolved a strategy to set up centers of excellence in universities to impart training in the field of telecom industry.

Crackdown on Unauthorized Sale of SIMs

Published by Babar Bhatti on August 9, 2007 under Government Regulations, Mobile Companies, Security, Telecommunications

PTA is in the vigilante mode again. This time national security concerns are driving a campaign against fraudulent SIMs and to ensure that when issuing a new SIM, copy of the National Identity Card (CNIC) of the customer is obtained at the sale point. The mobile companies have been asked to share their existing subscriber information with NADRA as well. NADRA has found a large number of forged identity cards, it was recently reported in the media. This issue came up in the National Assembly too.

The PTA news release says:

PTA has started checking the unauthorized sale of new SIMs from 1st August across the country to ensure that new mobile connections are issued after proper documentation.

PTA would start sealing those franchises which were not complying with PTA instructions on issuance of new cellphone SIMs and concerned company will be asked to cancel its franchise. After these inspections, companies will also be asked to take remedial measures and ensure the implementation of PTA directives in this regard.

PTA has directed the mobile companies to get their data streamlined at their end by August 31, 2007. Companies will provide complete data of their subscriber base to NADRA for verification purposes.