China’s help for ‘smartphones made in Pakistan’

[Secret Service]

ISLAMABAD : A Chinese delegation expressed its commitment to set up a smartphone manufacturing plant in Pakistan before Finance Minister Ishaq Dar assured the investors of reduced income tax rates as a neatly-folded package of incentives.

The delegation said the plant would be set up on a fast-track basis as Pakistan begins to move forward in the telecom sector after acquiring next-generation 3G and 4G services.

In response, the government on Friday assured the Chinese mobile manufacturing companies that its upcoming production plants of smart-phones for next-generation services will qualify for reduced income tax rates announced in the new budget as part of incentives to lure foreign investors.

Chinese Mobile Companies Association Secretary General Lou Peide, who was the head of the delegation, informed that the group comprises prominent Chinese companies in the smartphone manufacturing sector. He said the delegation is in Pakistan to share Chinese experience and expertise as Pakistan’s domestic market presents a huge opportunity for the manufacturing of smartphones capable of 3G/4G technology.

Piede mentioned that with a population of nearly 200 million and a high growth rate of the mobile industry, there is a huge requirement for local manufacturing units in the country.

He informed that Chinese companies own almost 80% of the global market and produce smartphones that cost between $22 to $600, highlighting the impact of Chinese companies in the global mobile phone market.

The auction of next-generation contributed significantly to the national exchequer and Pakistan earned over $1 billion from the auction of these licences. Two licences of next-generation technology remain unsold.

Incentives

As against the present corporate income tax rate of 33 percent, the Foreign Direct Investment (FDI) in manufacturing, construction and housing will be subject to 20 percent corporate income tax.

Assisted by the Minister of State for Science and Technology and other officials, Dar briefed the Chinese investors on the latest economic indicators and performance of the economy during the last year. He also discussed the proposed budget which provides special incentives for foreign investment in Pakistan.

Dar said that FDI in the Information Technology sector will enjoy a special corporate tax rate for the next five years if they complete their projects in a three-year time period till June 30, 2017. The finance minister assured the group of investors that their concrete proposal prepared in consultation with the ministry of IT and the Board of Investment (BOI) will be considered seriously to develop local mobile manufacturing units in Pakistan.

He further assured the delegation of Chinese investors that the government will provide incentives for local manufacturing of smartphones and other IT related solutions during the next three years.

Dar concluded commenting that as Pakistan has an educated and skilled young labour force, the country can and should be used as an export base to the whole region

 

[Secret Service]

A Chinese delegation expressed its commitment to set up a smartphone manufacturing plant in Pakistan before Finance Minister Ishaq Dar assured the investors of reduced income tax rates as a neatly-folded package of incentives.

The delegation said the plant would be set up on a fast-track basis as Pakistan begins to move forward in the telecom sector after acquiring next-generation 3G and 4G services.

In response, the government on Friday assured the Chinese mobile manufacturing companies that its upcoming production plants of smart-phones for next-generation services will qualify for reduced income tax rates announced in the new budget as part of incentives to lure foreign investors.

Chinese Mobile Companies Association Secretary General Lou Peide, who was the head of the delegation, informed that the group comprises prominent Chinese companies in the smartphone manufacturing sector. He said the delegation is in Pakistan to share Chinese experience and expertise as Pakistan’s domestic market presents a huge opportunity for the manufacturing of smartphones capable of 3G/4G technology.

Piede mentioned that with a population of nearly 200 million and a high growth rate of the mobile industry, there is a huge requirement for local manufacturing units in the country.

He informed that Chinese companies own almost 80% of the global market and produce smartphones that cost between $22 to $600, highlighting the impact of Chinese companies in the global mobile phone market.

The auction of next-generation contributed significantly to the national exchequer and Pakistan earned over $1 billion from the auction of these licences. Two licences of next-generation technology remain unsold.

Incentives

As against the present corporate income tax rate of 33 percent, the Foreign Direct Investment (FDI) in manufacturing, construction and housing will be subject to 20 percent corporate income tax.

Assisted by the Minister of State for Science and Technology and other officials, Dar briefed the Chinese investors on the latest economic indicators and performance of the economy during the last year. He also discussed the proposed budget which provides special incentives for foreign investment in Pakistan.

Dar said that FDI in the Information Technology sector will enjoy a special corporate tax rate for the next five years if they complete their projects in a three-year time period till June 30, 2017. The finance minister assured the group of investors that their concrete proposal prepared in consultation with the ministry of IT and the Board of Investment (BOI) will be considered seriously to develop local mobile manufacturing units in Pakistan.

He further assured the delegation of Chinese investors that the government will provide incentives for local manufacturing of smartphones and other IT related solutions during the next three years.

Dar concluded commenting that as Pakistan has an educated and skilled young labour force, the country can and should be used as an export base to the whole region

 

[Fahad Khan 2]

Good news I think this will make smartphone more cheaper..

 

[RAMPAGE]

 

[faisal6309]

It means that 3G & 4G phones will become more cheap.

 

[Zhukov]

It means that 3G & 4G phones will become more cheap.

Impotantly, it means more jobs and less imports

 

[faisal6309]

Importantly, it means more jobs and less imports

plus more exports. In the era of Musharraf, I heard that Nokia is willing to create their manufacturing plants in Pakistan. In the past, we use to create air conditioners and other different products. They all shift their selves to China. We had another chance to settle things. We should not repeat our mistakes this time.

 

[Dubious]

plus more exports. In the era of Musharraf, I heard that Nokia is willing to create their manufacturing plants in Pakistan. In the past, we use to create air conditioners and other different products. They all shift their selves to China. We had another chance to settle things. We should not repeat our mistakes this time.

There was an article that the labour costs in China is increasing so people want to move their factories where it would be cheaper to employ people....

Hope we build up our labour protection laws too...More jobs yes welcome but within limits!

can we merge this with China’s help for ‘smartphones made in Pakistan’

@Fulcrum15 @Aeronaut @WebMaster @Jungibaaz @Chak Bamu @Emmie @Manticore @Oscar

 

[Muhammad Omar]

 

[Bouncer]

Labor costs in China are increasing rapidly and lots manufacturers are looking to shift to other cheaper countries in near future. Pakistan has qualified and cheap labor. If we are able to combine it with business friendly laws and an improved security situation, then with our 200M people market, we have a bright economic future.

Similarly in IT outsourcing we can become a global powerhouse. I remember in Musharaf's time, two Chinese companies, Huawei and ZTE, planned to move some R&D centers to Pakistan. ZTE did move some operations here. Ericsson was developing a regional center in Pakistan to provide telecom professionals (hired in Pak) all over the world for telcom projects.

 

[Viper0011.]

Labor costs in China are increasing rapidly and lots manufacturers are looking to shift to other cheaper countries in near future. Pakistan has qualified and cheap labor. If we are able to combine it with business friendly laws and an improved security situation, then with our 200M people market, we have a bright economic future.

You nailed it. I've been saying it all along. Pakistan has a HUGE labor force. China and India are getting expensive due to rising labor costs. It is a great time for Pakistan to create a more secure environment, take care of this terrorism issue and become a stable country. The business will follow.
With the ability to produce smart phones in the country.....you'll create more jobs, cheaper phones, export capability.....AND ability to create mobile computing platforms. Mobile computing or future smaller nano-computing is the future. By doing this, you guys will be learning the smallest chip integration (and at some point manufacturing too hopefully). That's the future. 10 years or so from now, the laptops will fade away, the devices like wrist watches and mobile phones will be doing everything. So this is a great step forward. If you guys do it right, you'd bypass the previous gaps you guys went through and will merge right with the latest technology. That's very significant. But the country MUST have a safe, terrorism free environment for business and economy to grow

 

[WishLivePak]

India has a lot of factories... Bombadier is there, making planes trains etc. Computer companies, mobile carriers... We must get firms to open factories here. This is how things get cheaper.

Take turkey, it serves many boeing parts for much of Asia. This helps boeing, but also turkey. And one day turkey will be makinv its own jets, as it is making helicopters with italy. We need these factories so people start learning to get job here. If there was a jet factory in Pakistan, so many will learn about jets. Sadly, there is none. The small amount who still want to learn go overseas and work there.

 

[Bouncer]

India has a lot of factories... Bombadier is there, making planes trains etc. Computer companies, mobile carriers... We must get firms to open factories here. This is how things get cheaper.

Take turkey, it serves many boeing parts for much of Asia. This helps boeing, but also turkey. And one day turkey will be makinv its own jets, as it is making helicopters with italy. We need these factories so people start learning to get job here. If there was a jet factory in Pakistan, so many will learn about jets. Sadly, there is none. The small amount who still want to learn go overseas and work there.

Dear, I don't think its easy to bring companies like Boeing or Bombardier to manufacture in your country unless there is significant business there for these companies. Normally these aircraft / train / large locomotive manufacturers establish factories in countries as a part of huge deals. And that too is done after using lots of political influence.

But I do agree that these large companies bring their complete ecosystem with them. For example, if Boeing decides to make some aircraft parts in Karachi, lots of small but high tech companies will also follow or grow locally.

 

[WishLivePak]

Dear, I don't think its easy to bring companies like Boeing or Bombardier to manufacture in your country unless there is significant business there for these companies. Normally these aircraft / train / large locomotive manufacturers establish factories in countries as a part of huge deals. And that too is done after using lots of political influence.

But I do agree that these large companies bring their complete ecosystem with them. For example, if Boeing decides to make some aircraft parts in Karachi, lots of small but high tech companies will also follow or grow locally.

i said firms, not boeing... i gave example of turkey and india, how they have these firms serving entire region. we have to start with small firms and then big companies will come. Small companies feed big companies. otherwise theh've to import, which is costly

 

[Secret Service]

i believe Pakistan will produce quality phones ..