Govt Proposes 5% Levy on Mobile Imports for Localisation

ISLAMABAD: The government is finalising a new Mobile and Electronic Device Manufacturing Policy for 2026–33, proposing a 5% import levy on mobile phones and electronic devices to generate $368 million in revenue while pushing localisation of manufacturing. The policy, awaiting Prime Minister Shehbaz Sharif’s approval, builds on existing high import duties and aims to shift from assembly-only to full-scale production, encouraging global brands to set up local facilities and supporting domestic players to scale up. The Engineering Development Board (EDB) targets 50% localisation in mobile manufacturing and 70% e-waste recovery by 2033, alongside training 50,000 skilled workers (including 15,000 specialists). Since the PTA issued 37 assembly licences, local production surged from 0.1 million units in 2019 to 30.1 million in 2025, meeting 93% of demand and slashing imports from 16 million to 2.04 million. Pakistan has started exporting phones to the UAE and GCC, attracting $250–300 million investment and creating 50,000–60,000 direct/indirect jobs.