Update: Abdul Razak has clarified that he was misquoted, and Samsung is coming to Pakistan. Read his latest tweet for more info.
Abdul Razak Dawood on Twitter: “A statement has appeared in a section of media, wherein I have been misquoted regarding setting up of mobile phone manufacturing unit by Samsung in Pakistan. I wish to clarify that I had stated that Samsung has changed its earlier decision & now has agreed to come to Pakistan as” / Twitter
Its been years since the rumors of Samsung opening its assembly plant in Pakistan surfaced online. Recently, we saw the news that Lucky Motors is bringing Samsung to Pakistan to produce their smartphones. However, Samsung Pakistan has officially declined this news. According to the officials, Samsung is not going to produce its smartphones in Pakistan as of now.
The news comes from Advisor on Commerce Razak Dawood on Tuesday. He said that Pakistan failed to woo Korean mobile manufacturing giant, Samsung, to establish a manufacturing and assembly plant in the country.
“We contacted Samsung mobile company twice, but they declined,” he informed.
However, he is optimistic about other manufacturers coming to Pakistan. The advisor said that a Chinese company is setting up a factory in Karachi for mobile phone manufacturing. He did not disclose the name of the company, however, Xiaomi is a safe bet.
“I am now trying to convince the Chinese to start mobile phone exports from Pakistan. They [Chinese] started production last year and I had given them a target of December 2021. They have assured me that they will begin exports from January 2022 onward,” he added.
Even though Samsung is not coming to Pakistan but the good news is many Chinese companies will be opening their assembly plant in Pakistan. This will encourage exports as well as cheaper products for the nation.
The reason behind high smartphone prices in Pakistan
Due to the recent high import tax, smartphone prices have increased drastically in Pakistan. Companies have increased their smartphone prices. The government has markedly increased regulatory duties on the import of smartphones up to a 240% hike for additional Rs27 billion revenues in the new fiscal year. This new increase will only affect smartphones that are being imported, and not locally assembled products.
The condition of the smartphone market in Pakistan won’t improve until the assembly plants are up and running. If you are looking to buy a new smartphone, it might not be the best time. Wait till the prices are stable. Let us know your opinions on high smartphone import tax in the comments section below.
Read also: Smartphone Import Tax Skyrockets By 240% In Pakistan