In another major development for Pakistan's manufacturing sector, South Korean electronics giant Samsung is in the process of establishing a television line-up plant in Karachi, announced Advisor to Prime Minister on Trade and Investment Abdul Razak Dawood on Tuesday.
“I have been informed that Samsung Electronics is in the process of establishing their TV line-up plant in collaboration with the R&R Industries at Karachi,” said Dawood in a tweet.
The advisor added that the said plant would become functional in the fourth quarter of 2021 and is expected to produce 50,000 units annually.
“This is a vindication of MOC’s "Make-in-Pakistan" policy for industrialization via rationalization of input costs and other incentives,” added Dawood.
As per the financial results for the second quarter ended June 30, 2021, Samsung Electronics posted consolidated revenue of Korean Won (KRW) 63.67 trillion, a 20% increase from the previous year and a record for the second quarter. Operating profit increased 34% from the previous quarter to KRW 12.57 trillion as market conditions improved in the memory market.
The development also comes as a major boost to Pakistan that has been promoting local assembly/manufacturing in a bid to reduce reliance on imports.
Back in July, Lucky Motor Corporation (LMC), a subsidiary of Lucky Cement Limited, announced in a notice to the Pakistan Stock Exchange that it has entered into an agreement with Samsung Gulf Electronics Co., FZE (Samsung) for the production of Samsung-branded mobile devices in Pakistan.
The notice added the production facility for producing Samsung mobile devices will be located at LMC’s existing plant facility producing vehicles at Bin Qasim Industrial Park, Special Economic Zone, Port Qasim, Karachi.
The production facility is expected to be completed by end of December 2021.
Last month, the Pakistan Communication Authority (PTA) issued the Mobile Device Manufacturing (MDM) authorisation to LMC to manufacture Samsung-branded phones in the country.
The authority said this is a landmark achievement and “will further revolutionise the vibrant mobile manufacturing ecosystem in the country by ensuring the presence of major local and foreign players in the market".