The federal government is considering imposing a levy of up to five percent on the import of mobile phones and electronic devices as part of a proposed manufacturing policy for 2026–33, according to media reports.
The proposed levy is expected to generate $368 million, which would be used to localise mobile phone production in Pakistan. The policy is nearing completion and is awaiting Prime Minister Shehbaz Sharif’s assent.
The current taxes on imported mobile phones are expanded upon by the Mobile and Electronic Device Manufacturing Policy. With a focus on boosting domestic production and exports, the program seeks to transition the sector from simple assembly operations to full-scale manufacturing within the nation.
Under the policy framework, international mobile phone brands will be encouraged to establish manufacturing facilities in Pakistan. Local manufacturers are expected to receive support to expand their production capacity. The Engineering Development Board (EDB) has set a target of achieving 50 percent localisation in mobile phone manufacturing by 2033.
The policy also includes targets related to electronic waste recovery. Authorities aim to achieve a 70 percent e-waste recovery rate by 2033 as part of the localisation drive. In addition, the policy outlines plans to train 50,000 skilled workers over the policy period, including 15,000 specialised professionals.
Data from previous years shows growth in local assembly following regulatory approvals. The Pakistan Telecommunication Authority (PTA) issued 37 licences for local mobile phone assembly, leading to an increase in production from 0.1 million units in 2019 to 30.1 million units.
By 2025, domestic production is expected to meet 93 percent of market demand. During the same period, mobile phone imports are projected to decline from 16 million units in 2019 to 2.04 million units.
Pakistan has also started exporting mobile phones to markets including the United Arab Emirates and other Gulf Cooperation Council countries. Investments in the sector are estimated at $250–300 million, contributing to the creation of between 50,000 and 60,000 direct and indirect jobs.