ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has formally allowed Samsung, a South Korean electronics giant, to start production of its mobile phone devices in the country through its local partner Lucky Motor Corporation Ltd.

The PTA on Tuesday issued a Mobile Device Manufacturing (MDM) authorisation to Lucky Motor to set up an assembly plant in Karachi for producing Korean mobile devices.

The PTA has so far issued around 25 MDM authorisations to foreign and local companies for the production of mobile devices (2G/3G/4G).

The locally manufactured mobile devices will also be exported and will have a significant impact on reducing the imports of mobile devices and their accessories.

“The authorisation to manufacture Samsung mobile devices in Pakistan was a landmark achievement and will help further revolutionise the vibrant mobile manufacturing ecosystem in the country,” the PTA said in a statement.

The addition of Samsung to the list of companies that have established their assembly line in the country has been welcomed by existing players including Airlink, which is manufacturing major Chinese mobile phone brands including Huawei.

“Currently almost all the production line has been set up by the Chinese companies and the arrival of the Korean giant will significantly give a boost to the mobile sets manufacturing sector,” said Airlink chief executive officer Muzzaffar Hayat Piracha.

He added that the focus of most of the manufacturers was currently over assembly line, but at the same time there was a huge potential and investment coming in the sales and marketing side too.

As the competition in the IT and telecom sector continues to grow, one of the mobile device manufacturing units is set to raise finances through the stock market.

Airlink is prepared to launch what is said to be the largest initial public offering (IPO) of the IT and Telecom sector and its book building process will be held on Aug 30 and 31.

“We intend to generate between Rs5.85 billion and Rs8bn through the floating of the company’s shares at the stock market,” Mr Hayat said.

Published in Dawn, August 11th, 2021



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