ISLAMABAD, Pakistan — Pakistan’s government is considering a 5% mobile phone levy on imported handsets and other finished electronic devices under a draft manufacturing policy that would run from 2026 to 2033. Officials say the mobile phone levy would bankroll incentives for local manufacturing, but importers warn the added cost will quickly feed into higher consumer prices, Jan. 3, 2026.
The proposed Mobile and Electronic Device Manufacturing Policy would cover mobile phones, laptops and other electronics and is awaiting final approval, according to The Express Tribune. The report said the plan was discussed in consultations chaired by Haroon Akhtar Khan, a special assistant to the prime minister, with the Engineering Development Board and industry representatives.
Across the 2026-33 period, officials expect the mobile phone levy to raise about $368 million to support localization goals such as component production, skills development and electronic waste systems. Draft targets include 50% localization in mobile phones by 2033, 70% recovery of electronic waste, and training for 50,000 workers.
How the mobile phone levy could hit prices
The mobile phone levy would be collected at the import stage, so any higher landing cost is likely to show up quickly at the shop counter. Imported, higher-end phones that are not assembled locally are expected to feel the squeeze first, while locally assembled budget devices may be less exposed.
A Business Recorder analysis warned that taxes on phones are already heavy, saying cumulative charges can reach as high as 55% of a handset’s price in some cases. It also argued Pakistan’s earlier localization targets were missed, raising questions about whether another levy will deepen manufacturing or simply raise costs.
Draft details described by Samaa TV suggest a tiered structure ranging from 1% to 5% depending on the value of imported finished electronics. The documents estimate about Rs104 billion in revenue over seven years and project local device prices could fall if a deeper supply chain takes hold.
Import trends will also shape the levy’s take. Pakistan imported mobile phones worth about $801 million in the first five months of fiscal year 2025-26 (July through November), up more than 40% from the same period a year earlier, Business Recorder reported.
Older debates, new deadline
Pakistan has been trying to build a domestic handset ecosystem for years. A 2024 Dawn report on localising cellphone production described how enforcement against undocumented phones and earlier policy incentives helped boost local assembly, even as industry officials acknowledged localization of higher-value components remained limited.
Manufacturers have also pushed for tariff changes that make it cheaper to import raw materials than finished parts, and for tougher action against smuggling, according to a December 2024 Express Tribune report.
For consumers and retailers, the next step is the fine print: when the mobile phone levy would start, which devices fall into the top 5% bracket, and whether the government pairs the charge with measures that make local component production viable rather than simply making imports more expensive.
