KARACHI: A leading Pakistani company announced on Friday it was going to set up Samsung mobile phone assembly plant in Pakistan, adding it had already approached the country’s telecom regulator to secure license for the purpose.
“Lucky Motor Corporation (LMC), a subsidiary of Lucky Cement, has entered into an agreement with Samsung Gulf Electronics (a company based in South Korea) for producing Samsung branded mobile phone devices in Pakistan,” the Pakistani organization said in a written statement.
“In pursuance of this transaction, LMC has also initiated the process of seeking necessary regulatory approvals to carry on the business,” the statement continued, adding that the local firm had “filed an application with the Pakistan Telecommunication Authority [PTA] to secure” the permit.
The cement company diversified in the automobile sector by manufacturing, assembling, marketing and distributing KIA and Peugeot vehicles. It also sells spare parts and accessories of these cars in Pakistani market.
The company announced it would set up its cellphone production facility at LMC’s existing plant in Karachi’s Bin Qasim Industrial Park.
The production facility is expected to be completed in December, said the company statement.
According to the PTA, Pakistan’s total annual market size of mobile phones is estimated at 34 million handsets out of which 20 million are 2G and 14 million are 3G/4G.
In terms of its value, the market size of mobile sets in Pakistan is estimated to be about $2.5 billion, based on import data provided by the Pakistan Bureau of Statistics.
The PTA informed Arab News last month that the country had manufactured 5.34 million 2G and 2.23 million 3G/4G devices since the beginning of the year until May 2021.
While the LMC says it will soon discuss its investment level with Samsung, analysts maintain the amount could be about $100 million.
“The investment size is rumored to be around $100 million,” Muhammad Sohail, chief executive officer of Topline Securities, said.
“Our working suggests the venture can generate an annual revenue of about $300-600 million and the project can make net profits of Rs1 billion to Rs1.5 billion in its formative phase,” he added.
Samsung had setup an assembly plant in Bangladesh in 2018 which proved to be a success, with an average output of about 2.5 million units annually.
The Pakistani government is also providing protection to the industry though its Mobile Device Manufacturing Policy which can potentially reduce the rates of locally manufactured handsets by about 50 percent.
Pakistan has granted a 10-year mobile device manufacturing authorization to 19 companies in the country under the mobile device manufacturing regulations.
Samsung to set up mobile phone manufacturing facility in Pakistan by end of 2021
https://arab.news/4dtk7
Samsung to set up mobile phone manufacturing facility in Pakistan by end of 2021
- Independent analysts say the facility may initially generate an annual revenue of about $300-600 million
- Pakistan’s mobile manufacturing policy is expected to bring down prices of locally produced handsets by about 50 percent
Pakistan consumer confidence rises by 4 percentage points in two years, survey shows
- Four in 10 Pakistanis believed the country is on the right track, with optimism higher among men
- Economic concerns remained most worrying, but their quantum fell drastically across all issues
ISLAMABAD: Consumer confidence in Pakistan has risen by 4 percentage points from 31.5 to 35.5 over the last two years, which highlights improving public optimism under the government’s tenure, Ipsos market research firm said in a recent survey.
The survey was conducted through computer-assisted telephonic interviews (CATI) and included more than a thousand participants from all provinces and Azad Kashmir and Gilgit Baltistan regions on Feb. 2-14.
It comes at a time when Pakistan has undergone a difficult period of stabilization, though international rating agencies have acknowledged improvements after Islamabad began implementing structural reforms as part of its $7 billion International Monetary Fund (IMF) program.
The Ipsos survey revealed a “measurable” improvement in Pakistan’s economic sentiment, marked by a decline in inflation alongside notable reductions in poverty and unemployment, since the current government took charge two years ago.
“These findings point to a clear two-year transformation in the Consumer Confidence Index, demonstrating the perceived impact of consistent governance and policy measures,” read the key takeout in the survey.
“Sustained performance, coupled with transparent communication of achievements, will be essential to maintain momentum, reinforce optimism, and support further improvements in economic confidence.”
Four in 10 Pakistanis believed the country is on the right track, with optimism higher among men, while confidence in the country’s direction being right increased more than three times, from 12 percent to 40 percent, since the government came to power, according to the survey.
Economic concerns remained most worrying, but their quantum fell drastically across all issues since the first quarter of 2024. Inflation has dropped by 23 percent, unemployment by 10 percent, poverty by 20 percent, electricity prices by 34 percent and the burden of additional taxes was reduced by 18 percent in Q1 2026 as compared to Q1 2024.
“One in 3 Pakistanis expect the economy to strengthen,” the survey read. “Confidence to invest has grown steadily over two years, rising from 11 percent to 16 percent, with even stronger optimism among urban residents.”
