Samsung Electronics, in collaboration with R&R Industries, is in the process of establishing a television manufacturing plant in Karachi, which will start working in the fourth quarter of current year and is expected to produce 50,000 units per annum, said Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood.
“This is a vindication of the Ministry of Commerce ‘Make-in-Pakistan’ policy for industrialisation through rationalisation of input costs and other incentives,” he said.
Talking to The Express Tribune, SI Global Solutions Chief Executive Officer Noman Ahmed Said termed the milestone a remarkable sign for Pakistan’s economy.
“Even after the recent unfortunate refusal of New Zealand and England cricket teams to play in Pakistan, our resilience continues to provide unique solutions for our needs to be met locally,” he said.
Moreover, it would attract international expertise and inevitably cause a domino effect by attracting more global companies to begin manufacturing locally, he added.
Additionally, the increased competition in the local market would lead to a higher quality benchmark and subsidised pricing as well, said the SI Global CEO.
He pointed out that it would be challenging for the local manufacturers to come on a par with such significant investment from Samsung.
He was of the view that the government could also favour increased local manufacturing with the introduction of encouraging policies.
“It is a feat to admire though, that despite the propaganda that constantly surrounds us, Pakistan is still managing to secure foreign investment, especially in the technology sector where there has been record-breaking growth,” said the CEO.
Earlier, Samsung had announced that it would assemble mobile phones in Pakistan in a joint venture with Lucky Motor Corporation.
Lucky Motor has entered into an agreement with Samsung Gulf Electronics to produce cellphones at its Port Qasim automobile plant.
Pakistan needs to expand its industry and curtail imports as the country reported the highest-ever monthly trade deficit in August 2021.
Exports stood at $2.23 billion in August 2021, up 41% year-on-year, whereas imports were valued at $6.46 billion, up 94.9% year-on-year.
The trade deficit jumped by 144% year-on-year to $4.23 billion in August 2021. Foreign direct investment was lower by 10% year-on-year during the same month.
Published in The Express Tribune, September 23rd, 2021.
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