PTA gives Kia-Lucky license to manufacture Samsung smartphones

Production facility to become functional by December 2021

The Pakistan Telecommunication Authority has given Lucky Motor Corporation Limited the license to manufacture Samsung smartphones in the country.

The Lucky Motor Corporation is a subsidiary of Lucky Cement Limited and assembles Kia cars in Pakistan.

“In accordance with Mobile Device Manufacturing (MDM) Regulations 2021, PTA has issued MDM authorization to Lucky Motor Corporation Limited for manufacturing of Samsung brand mobile devices,” the PTA announced on Tuesday.

The company had applied for authorisation to set up a mobile device manufacturing plant in Karachi where it will manufacture Samsung mobile devices.

“The manufacturing of Samsung mobile devices in Pakistan is a landmark achievement and will further revolutionise the vibrant mobile manufacturing ecosystem in the country by ensuring presence of major local and foreign players in the market,” PTA said in a media release.

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

Earlier, LMC announced it had entered into an agreement with Samsung Gulf Electronics Co. for producing the brand's mobile devices in Pakistan.

Muhammad Rizwan, the president of the Karachi Electronics Dealers Association, who also has stakes in the retail business of mobile phones, says one can expect a 10% to 15% decrease price of Samsung cell phones after local assembling begins.

He said that companies will get incentives from the government if they start manufacturing in the country.

“There’s a huge demand for mobile phones in the country,” he said. “The companies manufacturing mobile phones in the country will get an edge over others as they will get incentives on duties and taxes.”

Rizwan, who owns an office in Pakistan’s biggest mobile phone market in Karachi, says there’s demand for mobile phones from neighbouring countries Afghanistan and Iran as well.

The production facility for the Samsung mobile devices will be located at LMC’s existing plant at Bin Qasim Industrial Park, Special Economic Zone at Port Qasim, Karachi. The plant is currently being used to manufacture vehicles.

The production facility is anticipated to be completed by the end of December 2021.

The company has not revealed the amount to be invested in the project as well as its production capacity.

Seven months ago, Chinese smartphone maker Vivo also announced its plan to establish a manufacturing facility in Pakistan. Q-Mobile, G-Five, Infinix, and Tecno among other companies are already manufacturing mobile phones in Pakistan.

Late last year, Engineering Development Board General Manager Asim Ayaz told SAMAA Digital that Samsung and Oppo have also been evaluating the Pakistani market for viability to set up manufacturing plants in the country.

Lucky Cement’s stock price rose by Rs8.35 during the day from Rs857 to Rs865.

Follow SAMAA English on FacebookTwitter, and Instagram.



Tabool ads will show in this div