The government is considering a 5% levy on the import of mobile phones and electronic devices as part of a new policy for the period 2026-33, to generate $368 million in revenue. This levy is expected to support the localization of mobile phone manufacturing in Pakistan, according to a news report.
The new policy, which is in its final stages and awaiting approval by Prime Minister Shehbaz Sharif, builds on already high tax rates applied to mobile phone imports. The Mobile and Electronic Device Manufacturing Policy aims to transition the industry from simple assembly to full-scale manufacturing, fostering local production and increasing exports.
Under the new policy, international brands will be encouraged to set up manufacturing facilities in Pakistan, while local brands will receive support to expand their production. The EDB’s goal is to achieve 50% localisation in mobile phone manufacturing by 2033, with a focus on e-waste recovery, targeting 70% by the same year. Additionally, the policy plans to train 50,000 skilled workers, including 15,000 specialized professionals.
In previous years, the Pakistan Telecommunication Authority (PTA) issued 37 licenses for local assembly, which led to a significant increase in production from just 0.1 million units in 2019 to 30.1 million units. By 2025, 93% of market demand is expected to be met domestically, with mobile imports dropping from 16 million units in 2019 to 2.04 million in 2025.Â
Pakistan has also begun exporting mobile phones to the UAE and GCC countries, with investments of $250-300 million, creating 50,000 to 60,000 direct and indirect jobs in the process.
