EDB clears first draft mobile device policy for ministry's perusal

After the passage of several months, the Board of Management of Engineering Development Board (EDB) has cleared the first draft mobile device policy for submission to Ministry of Industries & Production.

On October 7, 2019, Prime Minister Advisor on Commerce, Industries and Production and Investment, Abdul Razak Dawood had announced that the mobile device policy will be announced in November 2019.

A Karachi-based company has already started manufacturing of mobile sets but due to delayed decision and lobbying by the importers, the policy has been delayed. Meanwhile, Bangladesh has started export of mobile devices to the United States.

According to the EDB, the policy has been drafted, after extensive stakeholder consultation, with the objective to encourage local manufacturers in the sector through technology acquisition and localization. The proposed policy is expected to promote local investments and FDI. Local device manufacturing activity is projected to create 200,000 direct and indirect jobs in the country alongside development of efficient manufacturing eco-system and linking Pakistan to the global supply chain.

Pakistan is the 7th largest market for mobile sets with annual sales of 34 million sets in 2019. With an increasing demand and competitive advantage of labour cost, it can develop into a major industry capable to generate export surplus to sell its brand of "Make in Pakistan" in the international market.

According to Chairman EDB Board of Management, Almas Hyder, the main purpose of the policy was to make engineering sector one of the largest export-oriented sectors of Pakistan. This implies if the export of textile sector would cross $ 12 billion benchmark within the next 8-10 years then cellphone industry can contribute $ 500 million to $ 1 billion in the export of engineering goods.

The Board also deliberated on the Electric Vehicle Policy (EV) drafted by EDB in consultation with concerned stakeholders. It was proposed to have a comprehensive policy framework to not only cater for EV that covers emerging technologies in this sector as well as ensuring that the supply chains of the existing players may not be disrupted. The Board emphasized the need to have a favourable incentive regime to promote local investments and attract FDI.

A comprehensive plan for participation of engineering sector in international trade fairs/exhibitions were also presented in the meeting. The members appreciated efforts made by EDB's management to promote engineering sector of Pakistan. The Chairman advised to organize trade delegations to various free trade zones of African to tap the huge export potential in this region. Members also advised to look for trade opportunities in European and American markets.

CEO-EDB also briefed the Members on the competitive/efficiency improvement and export enhancement exercise being undertaken by EDB. In this regard 350 companies, Associations, Chambers were approached to invite proposals in order to address the anomalies in tariff cascading, procedural delays in availing benefits like DTRE and technological constraints in meeting international bench marks. These proposals once consolidated/evaluated by EDB and approved by the Board will be submitted to National Tariff Commission for approval.

An official statement said that in addition to approval of both draft policies, other administrative matters also came under discussion on which the advice of the Board Members was sought. The EDB-BoM members appreciated the tasks being undertaken by EDB's management to revitalize the organization and gave many suggestions to improve the working of this important organization to play its part well in the national as well as development of local industry to promote the GoP's vision of "Make in Pakistan".