The federal government on Monday announced a ban on the import of used mobile phones under the proposed Mobile and Electronic Devices Manufacturing Policy 2026–33.
The policy, prepared by the Engineering Development Board (EDB) in collaboration with local mobile phone manufacturers, aims to draw in global brands and encourage export-led growth through domestic production, in line with models adopted by countries such as India, Vietnam and Bangladesh.
Stakeholders examined the policy framework’s objectives and implementation plan during a high-level meeting chaired by Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan.
A detailed briefing was given on the proposed measures, including a comparison between local assembly and complete imports. Addressing the meeting, Haroon Akhtar Khan said the policy’s primary focus was to generate local employment and strengthen Pakistan’s industrial base.
Under the policy guidelines, mandatory export targets were described as counterproductive, citing the auto sector as an example. Exports will need quality certification, but this shouldn’t be enforced coercively. The policy also proposes the establishment of government-run local laboratories, penalties tied into to performance targets, and a defined minimum number of parts for semi-knocked-down (SKD) kits 40 parts for smartphones and 15 for feature phones.
It further recommends institutionalising valuation rulings with the participation of the EDB, the Pakistan Mobile Phone Manufacturers Association (PMPMA) and the Customs valuation directorate. To curb under-invoicing, both completely built units (CBUs) and locally manufactured mobile phones are proposed to be placed under the 3rd schedule of sales tax.
Export targets are to be directly linked with the implementation of Tax Increment Financing (TIF), while the tariff gap between CBUs and SKDs is proposed to be maintained at a minimum of 30 percent. The policy also suggests the application of a TIF levy on both CBU and SKD imports and acknowledges that e-waste management remains a complex challenge.
Haroon Akhtar Khan said phased localisation would be adopted to encourage foreign investment in high-tech manufacturing and ensure sustainable industrial growth. He added that the policy places particular emphasis on the local production of key components, including motherboards, printed circuit boards, electronic parts and display units.
He restated Prime Minister Shehbaz Sharif’s plans to integrate Pakistan into global value chains and turn the nation into an export base for foreign companies.
Major international brands, such as Samsung, Xiaomi, Oppo, Vivo, and Nokia, were told by representatives of mobile manufacturers that they might become investors under the new policy framework.
It was mentioned that growth in the mobile phone industry might benefit other electronic industries and support broader industrial development.
According to the SAPM, the policy’s goal is to establish an export-focused, globally competitive industrial structure that complies with international standards.
Strict compliance mechanisms will be enforced under the policy, with incentives to be withdrawn and penalties imposed in cases of violations related to localisation targets, reporting requirements or operational obligations. Non-compliance could also result in the suspension of import licences and financial penalties, as decided by the committee.
Mobile manufacturers stressed the need for quality certification for exports and called for the establishment of government-led local testing and certification facilities to meet international standards.