Mobile devices: PTA sets aside rumours of change in registration process, taxes

ISLAMABAD: Pakistan Telecommunication Authority (PTA) set aside the rumours of a change in the registration process and applicable duties/taxes for mobile devices.

The PTA spokesperson, Khurram Ali Mehran, told Business Recorder that there is no change in the registration process and applicable duties/taxes.

All mobile devices can currently be used for 60 days without registration or paying any taxes from the first day of usage. However, beyond 60 days, they will be blocked automatically, if not registered, he added.

There were rumors in the market for the last few days that the people having non-PTA-approved cell phones rejoiced to see local cellular networks on their handsets again. They took to social media to advise others to activate their subscribers’ identification module (SIMs) in their blocked phones.

While some consider it a technical glitch, rumours were rife that the Shehbaz Sharif-led government has abolished the hefty tax on expensive cell phones and directed the PTA to unblock the devices.

The implementation of the Device Identification, Registration and Blocking System (DIRBS) in 2019 has resulted in a significant increase in legal import of mobile devices and the establishment of over 33 local assembly plants of mobile devices in Pakistan.

These plants have produced over 50 million mobile devices including 4G smart phones, since implementation of the system. With the successful execution of the DIRBS, the local assembly industry has evolved from infancy to well growing stage, with significant growth seen in local assembly of smart phones.

In 2019, only 119,639 smart phones were assembled locally, whereas, in 2020, the number of such devices grew to 2.1 million. The manufactured/assembled mobile phones handsets by local manufacturing plants during the calendar year 2021 stood at 24.66 million compared to 13.05 million in 2020, i.e. 88 percent increase.

In the light of this impact of the DIRBS, the Government of Pakistan has introduced a comprehensive Mobile Manufacturing Policy to encourage and attract manufactures to Pakistan and establish their plants. The PTA has issued Mobile Device Manufacturing (MDM) Regulations and has started receiving mobile device manufacturing applications.

This initiative will help create more jobs in this technical sector, as well as enable consumers to buy locally-manufactured mobile devices. Pakistan has the distinction of implementing the world’s first open-source, full-fledged DIRBS.

Copyright Business Recorder, 2022