ISLAMABAD ( ABRAR MUSTAFA )
President Mamnoon Hussain has said that there exists huge potential for investment and profitable business ventures in the telecom sector of the country especially the manufacturing of 3G/4G compatible mobile handsets in wake of new opportunities created after the successful launch of these services in Pakistan.
While talking to a delegation of IT companies headed by Mr. Fan Yunjun, CEO China Mobile Pakistan here at Aiwan-e-Sadr today, the President invited the foreign investors especially the Chinese companies to take advantage of the opportunities that exist in IT sector of the country. Appreciating Chinese expertise in the field, the President observed that greater Chinese investment in this sector would create a win-win situation for the people of the two countries besides further augmenting our traditional, time-tested and multifaceted relationship.
The Chinese delegation included among others Mr. Lou Peide, Secretary-General, China Mobile Communication Association (CMCA), Mr. Chan Hoi Shu, CEO, Matsunichi Digital Development (Shenzhen) Company Limited, Mr. Xie Shouyang, General Manager, Asia Markets, Yulong Computer Telecommunication Scientific (Shenzhen) Co., Ltd., Mr. Zhang Shaolin, Chairman, Shenzhen Wave Multimedia, Mr. Kang Zhen, CEO, Shenzhen Hi-Tech Electronics Co., Ltd., Mr. Sun Jingchun, CEO, GuoDing Networkspace Security Tech Ltd., Mr. Liujiping, President, Oriental Unicont Technology (Beijing) Co. Ltd., Mr. Wang Tao, CEO, Wuhan Ke Yuan AnXin Technology Co. Ltd., Mr. Steven Kang, CEO, Hitec Technology Group Co. Ltd., Mr. Jason Sun, Guoding Cyberspace Security Technologies Co. Ltd. and Mr. Simon Xie, Coolpad Group Ltd.
Highlighting investment opportunities and investor friendly policies, he said that Pakistan offered the most liberal investment policies in the region where 100% equity was allowed and investors could repatriate 100% of their profit.
The President said that Government of Pakistan accords highest priority to the development of Information Technology and Telecommunications sector for the provision of quality services, employment generation and reduction in poverty.
The President said that keeping in view the existing level of broadband penetration in nearly 190 million population of the country and its future prospects, it was an ideal opportunity for investment and growth for telecom operators and handset manufacturers. He said that after the recent spectrum auction, the demand for 3G/4G enabled devices was likely to increase significantly.
The Chinese delegation while thanking the President for meeting evinced keen interest in further exploring business opportunities in the country in telecom sector.
Later on The Finance Minister briefed the investors on the latest economic indicators and performance of economy during the last one year. He also discussed the proposed budget which provides special incentives for the foreign investment in Pakistan. He informed the delegation that Foreign Direct Investment in IT sector will enjoy special corporate tax rate for the next five years if they complete their projects in three years time period i.e. till 30th June, 2017. He also informed that Pakistan has educated and skilled young labor force and it can be used as export base to the whole region.
Mr. Lou Peide Secretary General of Chinese Mobile Companies Association and head of the delegation informed that the group comprises of famous Chinese companies in smart phones manufacturing sector. He said that the delegation is in Pakistan to share Chinese experience as Pakistan’s domestic market presents a huge opportunity for manufacturing of smart phones capable of 3G/4G technology.
He mentioned that with nearly 200 million population and high growth rate in mobile industry there is a huge requirement for local manufacturing units in the Country. He informed that Chinese companies own almost 80% of the global market and produce smart phones with the cost from US $22 to US$600. He said that we have introduced multiple operating system and solutions to security requirements. The group expressed its commitment to set up smart phone manufacturing industry in Pakistan on the fast track.
The Finance Minister assured the group of investors that their concrete proposal prepared in consultation with the Ministry of IT and the BOI will be considered seriously to develop local mobile manufacturing units in Pakistan. He further assured the Chinese investors group that the government will provide incentives for local manufacturing of smart phones and IT related solutions during the next three years.
