PTA drafts new regulations to promote local manufacturing of smartphones

The Pakistan Telecommunication Authority (PTA) drafted the “Mobile Device Manufacturing Regulations and Authorization” on Tuesday. This new set of regulations aims to encourage local production of low, medium, and high-end smartphones.

The PTA has stated that this authorization will come into effect from the date of its issuance and will be valid for a period of ten years in Pakistan. Azad Jammu & Kashmir and Gilgit-Baltistan are exempt from these regulations.

According to the draft, a manufacturing plant is allowed to manufacture mobile device models for a specific brand only. In case of multiple brands belonging to different manufacturers, separate manufacturing and authorization will be required.

Furthermore, the manufacturer has to obtain ISO 9001 certification within a year of the issuance of manufacturing authorization. The manufacturer will have to ensure the transfer of technology of mobile device manufacturing within three years of issuance of authorization by PTA for the growth of technology and skills in Pakistan.

PTA points out that the “transfer of technology” includes the complete transfer of chipset design, set design and fabrication, and associated accessories such as power cables and earphones.

In an attempt to promote the local industry, PTA has made it mandatory for the manufacturer to ensure that local packing materials are used and its cost has to be two percent of the total manufactured device. Other components that mist be locally manufactured include chargers, Bluetooth earphones, motherboard assembly, plastic body of the mobile set, display screens, and battery.

Of course, all local manufacturing processes need to be carried out as per international standards.

Application fee for the manufacturing licence is $5,000 (approx. PKR 836,900) or equivalent in Pak rupees and the total fee to get the manufacturing authorisation is $50,000 (approx. PKR 8,369,130) or its equivalent in local currency.