Pakistan has officially hit a saturation point in mobile phone assembly. Currently, locally assembled phones dominate the domestic market. Specifically, their market share skyrocketed from 34% in 2019 to nearly 95% by 2025. The Pakistan Telecommunication Authority (PTA) issued 37 mobile manufacturing licenses during this period. Consequently, almost all global brands now assemble their phones locally, with Apple being the sole major exception.
However, true localization remains stuck in the single digits. Manufacturers still import more than 90% of device components. To tackle this massive gap, the Engineering Development Board (EDB) has drafted a new Mobile Phone Manufacturing Policy for 2026-2033. The policy currently awaits the Prime Minister’s final approval.
The new framework aims to transition Pakistan from a mere assembler to an export-competitive electronics manufacturing hub. Therefore, the government has set a strict 50% localization target by 2033. Furthermore, they plan to push mobile phone exports past the $500 million mark.
To achieve this, the policy introduces the Technology Innovation Fund (TIF). This performance-linked regime will impose progressive levies of 1% to 5% on imported Completely Built Up (CBU) and Completely Knocked Down (CKD) components. Over the next seven years, the government expects to collect PKR 104 billion. Subsequently, they will use this fund to offer an 8% rebate on exports.
Meanwhile, Original Equipment Manufacturers (OEMs) face strict operating conditions. To access TIF incentives, they must capture at least a 10% export market share in their principal brand’s designated territory. Additionally, they must comply with international standards like CE Marking, ISO 14001, and WEEE (e-waste) directives by the policy’s second year.
The rapid shift from commercial imports to local manufacturing is highly evident in recent market data. Here is a breakdown of the Market Demand Shift (2019–2025):
| Calendar Year (CY) | Commercial Imports (Million Units) | Local Assembly & Manufacturing (Million Units) |
| 2019 | 16.0 | 12.0 |
| 2020 | 25.0 | 13.0 |
| 2021 | 10.3 | 24.7 |
| 2022 | 1.5 | 21.9 |
| 2023 | 1.6 | 21.3 |
| 2024 | 1.7 | 31.4 |
| 2025 | 2.0 | 32.7 |
The government actively wants to attract major tech players like Apple and Samsung to establish direct manufacturing facilities. Alongside new devices, the policy specifically targets the refurbished phone market. Pakistan plans to import used phones solely for refurbishment and immediate re-export.
Officials estimate the industry can refurbish 30 to 40 million units annually. Ultimately, this initiative projects $300 to $400 million in yearly export revenue.
Despite the ambitious targets, industry experts highlight several critical flaws in the draft.
Due to fierce global competition, competing globally is exceptionally tough. China manufactures 90% of iPhones, while Vietnam strictly dominates Samsung production. Furthermore, emerging target markets like Africa have their own free-trade agreements, putting Pakistan at a severe disadvantage.
Pakistan also lacks established supply chains and international free trade agreements. The new policy fails to outline how the government will facilitate foreign market entry.
The 50% localization goal lacks clear operational details. It is a vague localization roadmap. High-value components, such as displays, require massive capital expenditure (CAPEX). Yet, the policy offers no specific tax exemptions to support this costly transition.
Experts fiercely warn that imported used phones yield low viable refurbishment rates. Typically, only 20 out of 100 imported units are export-ready. To hit the unrealistic $300-$400 million target, Pakistan would need to import a staggering $2 to $2.5 billion worth of used phones.
Finally, the framework heavily favors international brands. Instead, experts argue Pakistan must prioritize its own local brands. By nurturing local companies, Pakistan could eventually carve out a distinct global niche, much like China did with Xiaomi and Oppo. Merely assembling other people’s devices will not sustain long-term economic growth.