Import restrictions and higher tariffs were implemented with the intent of promoting domestic production and healthier exports, but in certain instances, they are turning out to be ineffective. Government measures that have prevented Pakistan from maximizing its export potential are expected to impede the country’s ability to sell mobile phones.
The Ministry of IT and Telecom in Pakistan was notified by mobile phone manufacturers about the limitations on getting letters of credit (LCs), which prevent them from satisfying local demand for phones, much alone exporting them.
The components used in the production of mobile phones that cannot be produced locally must be imported by these LCs.
These essential parts often come from the US, China, Korea, Japan, and a few European nations and include cameras, motherboards, and other technical devices.
After receiving a purchase order for 120,000 4G mobile phones from the United Arab Emirates (UAE), the first shipment of 4G phones was carried out in August of last year. The same business in charge of fulfilling this order now claims that doing so has grown more challenging because of import limitations put in place by The State Bank of Pakistan (SBP).
To read our blog on “Sugar mills request government approval to export sugar,” click here
