The federal government has invited Samsung to use Pakistan as a manufacturing and export base for smartphones, with a proposal to ship locally assembled devices to Africa and other emerging markets in an effort to expand the country’s electronics exports. The proposal was made by Commerce Minister Jam Kamal Khan during a meeting with a Samsung Pakistan delegation led by the company’s country head. The minister said Pakistan should move beyond serving only domestic demand and instead leverage its growing mobile phone manufacturing capacity to position itself as an export hub for the region.
During the meeting, Samsung briefed the minister on the progress of Pakistan’s mobile phone manufacturing sector and the company’s investment in local assembly operations. The company also raised concerns that a reduced tariff differential between Semi Knocked Down kits and Completely Built Units has eroded the competitiveness of smartphones assembled locally compared with imported finished devices. Samsung further objected to the commercial import of used mobile phones into the country, proposing instead that only certified refurbished devices produced through manufacturer authorized refurbishment centers offering quality assurance and warranties be permitted.
Jam Kamal Khan acknowledged the industry’s concerns over taxation policy affecting local assembly and said the issues raised would be reviewed by the ministry. The minister directed the mobile phone manufacturing industry to submit detailed proposals covering certified refurbishment standards, export potential, investment commitments, and international best practices that could inform future policy decisions. The exchange reflects ongoing friction between the government’s tariff structure and the local assembly sector, which has expanded significantly in recent years as multiple global smartphone brands set up assembly operations in Pakistan to serve the domestic market.
Pakistan’s mobile phone manufacturing sector has grown steadily since the introduction of policies encouraging local assembly, with several international brands establishing production facilities in the country to reduce import costs and serve rising domestic demand. The government’s push to position Pakistan as an export base for smartphones represents a shift in emphasis toward using that manufacturing capacity for regional trade rather than domestic consumption alone. Discussions between the Commerce Ministry and Samsung are expected to continue as both sides work through the specific proposals related to taxation, refurbishment standards, and export incentives that could shape the sector’s next phase of growth.
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