Pakistan is preparing for a major reset of its mobile and electronics industry as the federal government moves to ban the import of used mobile phones and shift the sector decisively toward local manufacturing, exports and high-value industrial development.
The measures form part of the newly unveiled Mobile and Electronic Devices Manufacturing Policy 2026- 33, presented on Monday by the Ministry of Industries and Production at a high-level meeting chaired by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan.
The policy, prepared by the Engineering Development Board (EDB) in collaboration with local manufacturers, aims to reposition Pakistan from a largely import-dependent mobile phone market into a regional manufacturing and export base, following the models of countries such as Vietnam, India and Bangladesh.
Why the Mobile Market Matters in Pakistan
| Indicator | Value |
|---|---|
| Population | 240 million |
| Global rank by population | 5th largest |
| Under age 35 | approx. 70% |
According to industry data presented by the Pakistan Mobile Phone Manufacturers Association (PMPMA), Pakistan’s mobile market is one of the largest in the world by volume. With a population of 240 million- 70% of it under the age of 35- demand for smartphones and electronic devices continues to expand rapidly.
Yet most devices are still imported either as complete built units (CBUs) or in semi-knocked down (SKD) form, limiting domestic value addition, job creation and export potential.
“The primary objective of the policy is to create employment opportunities at the local level and strengthen Pakistan’s industrial base,” Haroon Akhtar Khan told the meeting, adding that phased localization would be adopted to attract foreign investment in high-tech manufacturing.
Under the new framework, the government will encourage the local production of key components such as motherboards, printed circuit boards (PCBs), electronic parts and display units- areas that generate the most technological depth and industrial spillover.
Used phone imports to be banned
One of the most significant shifts under the policy is the decision to ban the import of used mobile phones, a move intended to protect local assemblers, improve quality standards and reduce grey-market distortions.
The policy also seeks to discourage under-invoicing and tax leakages by placing both imported and locally manufactured phones in the Third Schedule of Sales Tax, as recommended by the industry.
In addition, the tariff gap between CBUs and SKDs will be maintained at a minimum of 30 percent to incentivize local assembly and gradual localization.
No Forced Export Quotas, but Export Incentives
Unlike earlier industrial policies, the new framework avoids mandatory export targets, which industry representatives warned can be counterproductive- citing the auto sector as an example.
Instead, exports will be encouraged through market-based incentives. Export performance will be linked directly with Tax Increment Financing (TIF), giving manufacturers financial motivation to expand internationally rather than imposing penalties for missing rigid targets.
Leading global brands including Samsung, Xiaomi, Oppo, Vivo, Tecno, Infinix and Nokia have been identified as potential investors under the policy, according to officials and industry representatives.
Compliance, Localization and Penalties
The policy introduces a performance-based compliance regime with clearly defined localization benchmarks.
The EDB will specify minimum component counts for SKD kits:
- 40 parts per kit for smartphones
- 15 parts per kit for feature phones
Failure to meet localization, reporting or operational requirements could result in the withdrawal of incentives, suspension of import licenses and financial penalties.
| Area | Policy |
|---|---|
| Used phones | Imports banned |
| SKD kits (smartphones) | Min. 40 parts |
| SKD kits (feature phones) | Min. 15 parts |
| Tariff gap | Minimum 30% |
| Export targets | Linked to TIF, not mandatory |
| Penalties | Incentives withdrawn, fines, licence suspension |
At the same time, the government plans to establish local testing and certification laboratories to ensure export-grade quality standards- a long-standing demand of manufacturers seeking to compete globally.
E-Waste and Sustainability
The policy also acknowledges that electronic waste management is a complex and unresolved challenge. Officials said e-waste regulations would be developed carefully to avoid disrupting the industry while still addressing environmental concerns- a balance industry groups have repeatedly called for.
A Bid for Export-Led Growth
The government sees the mobile sector as a gateway into broader electronics manufacturing, with spillover benefits for appliances, IT hardware and component manufacturing.
“Our aim is to make Pakistan a base for global brands and integrate it into global value chains,” Haroon Akhtar Khan said, describing the policy as aligned with the prime minister’s vision of export-led industrial transformation.
Whether the new framework succeeds where earlier policies struggled will depend less on its ambition than on its execution- an issue the industry itself has flagged. Past policies, manufacturers warned, have often failed due to unrealistic targets, weak implementation and a lack of trust between government and industry.
This time, both sides appear to be signaling a more pragmatic approach: fewer rigid mandates, clearer incentives and a stronger focus on industrial depth rather than headline numbers. If implemented as designed, the 2026- 33 policy could mark a structural shift- not just for mobile phones, but for Pakistan’s broader manufacturing future.
