Govt likely to impose up to 5% levy on import of mobile phones

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ISLAMABAD (Kashmir English): Pakistan plans a new Mobile & Electronic Device Manufacturing Policy (2026-33) to boost local production, including potentially a 5% import levy to raise $368M for localization, shifting focus from assembly to full manufacturing.

The policy is aimed at encouraging global brands, that would also ensure 50% mobile localization by 2033, supported by stakeholder consultations and existing high import duties.

The policy aims to move beyond simple assembly to full-scale manufacturing, crucial for economic growth, exports, and job creation.

The scope of the policy covers mobile phones, laptops, and other electronics, making it a broad-based initiative.

A potential 5% levy on imports could generate $368 million over the policy period (2026-2033).

The government plans to train 50,000 skilled workers, including 15,000 specialists, per the media report. The policy is currently awaiting final approval from the Prime Minister.

The policy clearly defined phase-wise manufacturing targets and timelines, and the transition from assembling to manufacturing was on Pakistan’s doorstep, with the country’s economic progress closely linked to that shift.

Under the previous policy, 37 licences were issued by the Pakistan Telecommunication Authority (PTA) for local assembly. As a result, production grew from 0.1 million units in 2019 to 30.1 million units.

According to the PTA’s projections for 2025, 93% of market demand was met domestically while imports dropped from 16 million units in 2019 to 2.04 million units in 2025.

Pakistan exported 230,000 mobile phones

Apart from this, Pakistan exported 230,000 mobile phones to the UAE and Gulf Cooperation Council states. Also, mobile companies invested $250-300 million and created 50,000 to 60,000 direct and indirect jobs.

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