Mobile Manufacturing Giants Samsung, Huawei and Nokia have shown interest in manufacturing their Mobile phones in Pakistan due to low cost of labour. These companies currently have their manufacturing units in China but want to shift to Pakistan due to low labour wages in Pakistan. The Ministry of Industries and Production (MoI&P) in coordination with relevant stakeholders has been directed to formulate a policy to encourage local manufacturing of mobile devices.
The representatives of mobile industry revealed in a meeting that M/s Samsung, M/s Huawei and M/s Nokia – want to start manufacturing in Pakistan. The labor pay in China is very high, i.e., 5,000 (PKR 105,000) Yuan for unskilled and 20,000 (PKR 420,000) Yuan for technical work force whereas labor and skilled workforce is available in Pakistan at very low wages. Mobile devices consist of almost 60 sub-parts manufactured by vendor industry/secondary suppliers. The mobile manufacturing plant costs around Rs 2 billion.
Mansoor Khan, Joint Director Ministry of IT and Telecom stated that currently 23 companies are assembling mobile phones in Pakistan out of which 15 are in Azad Jammu and Kashmir due to tax holiday offered to industry in AJK.
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