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The Asian Development Bank (ADB) has identified the Pakistan Smartphone Industry as a key area for potential economic growth, urging the government to introduce targeted incentives to boost local manufacturing and exports.
In its latest report on Pakistan’s digital ecosystem, ADB noted that promoting smartphone production could help strengthen the country’s tech sector, create jobs, and support broader economic activity. The bank recommended that the government offer a clear set of incentives for private and foreign investors to manufacture smartphones locally, moving beyond traditional 2G “dumb” phones.
ADB further suggested that to enable Pakistan’s smartphone exports, the government should implement a proposed 3% research and development allowance on locally produced smartphone exports, as outlined in the existing Mobile Devices Local Manufacturing Policy 2020.
Highlighting gaps in the current setup, ADB called for an enabling legal and regulatory framework to support public-private partnerships in building digital infrastructure, stressing that such partnerships should ensure open access to all service providers. It also urged reforms to the Universal Service Fund (USF), proposing that funds be used to lay fiber up to union councils and to support projects like smart villages and affordable smartphone access.
The report pointed out that expanding smartphone ownership, especially for women, would help bridge the digital divide. ADB advised the government to collaborate with local players and international partners to design low-cost smartphone programs, including easy installment options.
By prioritizing local manufacturing, export incentives, and digital infrastructure, ADB believes the Pakistan Smartphone Industry can become a catalyst for investment, innovation, and economic uplift.
