Pakistan courts Samsung for smartphone exports as tech giant seeks tariff support

Pakistan has invited global tech giant Samsung to use the country as a regional manufacturing and export hub for mobile phones, with Commerce Minister Jam Kamal Khan urging the South Korean conglomerate to ship locally produced smartphones to Africa and other emerging markets.

The minister extended the invitation during a meeting with a delegation led by the Country Head of Samsung Pakistan at the Ministry of Commerce, read a statement released on Wednesday. Senior officials of the ministry were also present.

During the meeting, Jam Kamal encouraged Samsung to look beyond Pakistan’s domestic market and export Pakistan-manufactured smartphones to emerging markets, particularly to Africa and other regions.

He said Pakistan should leverage its growing manufacturing base to become part of global supply chains rather than serving only local demand.

The minister also appreciated the proposal of Samsung establishing certified mobile phone refurbishment facilities in Pakistan. He said a regulated refurbishment ecosystem would not only strengthen local industry but could also create export opportunities for professionally refurbished devices while generating employment and promoting technical expertise.

The Samsung delegation briefed the minister on the progress of Pakistan’s mobile phone manufacturing sector and highlighted the company’s investment in local assembly.

The delegation highlighted changes in the taxation structure and the narrowing of the tariff differential between Semi Knocked Down (SKD) and Completely Built Unit (CBU) of mobile phones, which had significantly reduced the competitiveness of locally manufactured mobile phones.

They requested the government to maintain a reasonable tariff differential to encourage continued investment and local manufacturing.

The delegation also expressed concerns over the commercial import of used mobile phones, stating that it undermines domestic manufacturing despite Pakistan having sufficient production capacity.

It proposed replacing commercial imports of used phones with certified refurbished phones under which original equipment manufacturers would establish authorised refurbishment facilities in Pakistan, enabling consumers to purchase quality-assured devices backed by warranties.

Responding to the proposals, Jam Kamal said Pakistan’s mobile phone industry had made significant progress over the past few years and future policy should focus on genuine manufacturing, higher local value addition, technology transfer and export growth.

He observed that the country now possesses sufficient manufacturing capacity and that industrial policies should encourage investment rather than dependence on imported used products.

Jam Kamal acknowledged the industry’s concerns regarding taxation and said these would be examined within the broader fiscal framework. He emphasised, however, that any incentives should be linked with investment, localisation, exports and value addition.

He further directed the industry to submit detailed proposals on certified refurbishment, export potential, investment commitments and international best practices to support the formulation of the revised Mobile Device Manufacturing Policy.

He stressed that any decision regarding commercial imports of used mobile phones should be evidence-based, phased and supported by the availability of certified locally refurbished alternatives to safeguard consumer interests.

Reaffirming the government’s commitment to industrial development, the minister said Pakistan offers significant opportunities for global technology companies and expressed confidence that stronger collaboration with leading manufacturers such as Samsung would contribute to investment, employment generation and increased exports.