New Policy Aims to Shift Pakistan Towards Local Manufacturing
The federal government has unveiled the Mobile and Electronic Devices Manufacturing Policy 2026–33, a long-term roadmap designed to move Pakistan away from imported phones towards high-value local manufacturing. Prepared by the Engineering Development Board (EDB) in collaboration with local mobile manufacturers, the policy takes inspiration from models used in India, Vietnam and Bangladesh.
The policy was shared in a high-level meeting chaired by Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan. During the session, officials presented a detailed assessment comparing the benefits of local assembly against importing completely built units (CBUs). Haroon Akhtar Khan said the main goals are to create local jobs, build Pakistan’s industrial base and secure a stronger foothold in global value chains.
Ban on Used Mobile Phone Imports Under New Framework
One of the most significant proposals in the new policy is a complete ban on the import of used mobile phones. The move is intended to support local assemblers and manufacturers by gradually shifting demand towards new, locally made devices. Officials believe that allowing large volumes of used phones into the market undermines investment in domestic production and limits the sector’s ability to scale.
Under the new framework, the focus will be on attracting global brands to assemble and eventually manufacture phones in Pakistan. Mobile manufacturers told the meeting that international brands such as Samsung, Xiaomi, Oppo, Vivo and Nokia are among the companies that could deepen their investment under a stable, long-term policy environment.
Tariff Structure, Tax Measures and Component Requirements
To encourage local value addition, the policy sets out a clear structure for tariffs and component requirements. It proposes a minimum 30 percent tariff gap between CBU and semi-knocked down (SKD) imports so that assembling phones inside Pakistan remains commercially attractive. The Tax Increment Financing (TIF) levy may apply to both CBUs and SKD imports, with export targets linked to TIF implementation.
The EDB has been tasked with defining minimum component requirements for local assembly. For smartphones, at least 40 parts will be required per SKD kit, while feature phones will need 15 parts per kit. Both CBUs and locally manufactured phones are recommended to be placed under the Third Schedule of sales tax to reduce under-invoicing and improve transparency.
Valuation rulings will be institutionalised with input from EDB, the Pakistan Mobile Phone Manufacturers Association (PMPMA) and the Customs valuation directorate.
Phased Localisation and Focus on High-Tech Components
Haroon Akhtar Khan said the new policy will follow a phased localisation model, giving investors a clear timeline for increasing local content. Special emphasis will be placed on manufacturing high-tech components within Pakistan, including motherboards, printed circuit boards (PCBs), electronic parts and display components.
The policy rejects rigid, mandatory export targets, calling them counterproductive, as seen in the auto sector. Instead, it stresses that while quality certification is essential for exports, it should not be imposed in a way that discourages production. The plan also calls for the establishment of government-run testing and certification laboratories so that locally made devices can meet international standards without relying only on foreign labs.
Officials noted that growth in the mobile sector will likely spill over into other electronics industries, supporting broader industrial development.
Compliance, Incentives and Penalties for Violations
The policy introduces strict compliance mechanisms to ensure that incentives are used responsibly. Incentives and tax benefits may be withdrawn in cases where manufacturers fail to meet localisation targets, reporting requirements or operational obligations. In serious cases of non-compliance, the suspension of import licences and financial penalties are also on the table.
Export targets are proposed to be directly linked to Tax Increment Financing, rewarding companies that expand exports while contributing to the tax base. At the same time, the policy acknowledges that e-waste management is a complex issue and stresses that the disposal and recycling of electronic waste will require careful, long-term planning.
Transforming Pakistan into an Export Base for Global Brands
During the meeting, Haroon Akhtar Khan reiterated Prime Minister Shehbaz Sharif’s vision of turning Pakistan into an export base for global brands. He said the mobile and electronics policy is part of a larger push to make Pakistan a competitive player in global manufacturing and integrate the country into international supply chains.
Mobile manufacturers highlighted that with the right policy stability, Pakistan can attract meaningful investment from leading brands, diversify exports and reduce dependence on imported phones. Haroon Akhtar Khan directed both public and private stakeholders to work together closely so that the policy does not remain on paper only, but translates into factories, jobs and exports on the ground.
The meeting was attended by Secretary Industries and Production Saif Anjum, EDB CEO Hammad Mansoor and representatives of the Pakistan Mobile Phone Manufacturers Association, who expressed support for the policy’s overall direction while stressing the need for timely implementation and continuous dialogue with industry.
