IN an important development which could be termed as a major step towards indigenization, the government has finalized the Mobile Device Manufacturing Policy under which regulatory duty on local assembly of smart phones will be reduced from the existing five percent to zero. Under the policy, forty per cent localization in manufacturing will be attained in the next two to three years which means that the charger manufacturing, casing of the phones etc would be done locally and with the passage of time one hundred percent manufacturing of mobile phones will be achieved
Indeed this is the way forward to put the economy on the sustainable positive trajectory. This policy which in fact has the necessary ingredients to attract foreign investment in assembly plants of mobiles will go a long way in creating immense job opportunities for the youth and saving millions of dollars in foreign exchange which we annually spend on the import of these products. Needful to mention is that Pakistan is the seventh largest importer of mobile phones with annual sales of thirty four million sets. With an increasing demand and competitive advantage of labour cost, we can develop this into a majority industry capable to generate export surplus and earn valuable foreign exchange. We are confident that the policy will be approved without any further delay so that its benefits could be accrued at the earliest. At the same time, it is also important the government also formulates such policies for other sectors and industries to promote local production and indigenization. We have to shift from a consumer economy to an export-led economy with special focus on production of high tech goods and equipment. Our defence industry has achieved an impeccable level of indigenization in high tech weaponry over a period of time. Whilst this pursuit should continue to achieve total indigenization in defence, our focus should be on research, innovation and production of new products that can be sold at the international market. It is only by diversification of our export basket particularly production of high value goods that we can address all economic woes and achieve self-reliance.
