The federal government is preparing to introduce new taxes on imported mobile phones and electronic devices as part of a wider plan to encourage local manufacturing and boost exports. The proposed measures include a 20% excise duty on imported mobile phones and a 10% customs duty on laptops, tablets, and desktops. Officials say the policy could also help Pakistan earn up to $400 million annually through re-export of refurbished devices.
The move is linked to the Mobile and Electronics Manufacturing Framework finalized by the Engineering Development Board. Officials say the policy aims to address challenges faced by local manufacturers, especially under the Pakistan-China Free Trade Agreement, which has increased competition from imported devices.
To support the industry, the government plans to establish a Rs 56 billion technology investment fund focused on mobile phones and electronic manufacturing. The fund is expected to help local assemblers expand operations, improve technology, and attract foreign investment.
Under the new plan, initially, the CKD duty will be set at 5%, with plans for an increase to 10% at a later stage. The policy was reviewed in a high-level meeting chaired by Haroon Akhtar Khan, with senior officials discussing its implementation. The Ministry of Industries and Production is expected to submit the framework to Prime Minister Shehbaz Sharif for final approval.
The framework also places strong emphasis on refurbishing mobile phones for re-export. According to the EDB, Pakistan could refurbish between 30 and 40 million mobile phones annually within dedicated export processing zones. These refurbished devices would be sent abroad, generating an estimated $300 million to $400 million in export revenue each year.
Two models are being considered for the re-export scheme. One allows temporary imports strictly for refurbishment and re-export under customs supervision, with tight IMEI tracking to prevent misuse. The second model permits regular commercial imports with full foreign exchange payment, followed by refurbishment and export.
Officials say global companies such as Apple and Samsung will be invited to set up manufacturing facilities in Pakistan under the new framework. The government believes this could create jobs, transfer technology, and reduce reliance on imports.