Incentives for Manufacture of Telecom Equipment in Pakistan
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.
TelecomPk.Net is a leading source of information and analysis about Pakistan Telecom industry.
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Hey all… just came across this blog and this exact article… fetched some nice info here - looks like Pakistan is on step closer to industrial progress and prosperity!
Dear Babar,
Would you please give present status of this information. I would like know if some one actually is interested in the investment in Pakistan especially in the cellular mobile phone manufacturing.
Thanks, hope to see incentives results.
Best regards,
Fawad
Telecommunication/Aerospace/Aviation/Safety/Emergency, and Security Equipment , SATCOM on the move