The federal government is planning to impose a ban on the import of used mobile phones under the proposed Mobile and Electronic Devices Manufacturing Policy 2026 to 2033, unveiled by the Ministry of Industries and Production on Monday. The policy has been developed by the Engineering Development Board in collaboration with local mobile phone manufacturers and is designed to strengthen domestic manufacturing, attract global brands, and promote export led growth in Pakistan’s electronics sector.
The proposed framework was presented during a high level meeting chaired by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, where stakeholders reviewed progress and aligned on objectives and implementation mechanisms. A detailed presentation outlined comparisons between complete imports and local assembly, highlighting the economic and industrial advantages of domestic manufacturing. Haroon Akhtar Khan stated that the central aim of the policy is to create employment opportunities and reinforce Pakistan’s industrial base by reducing reliance on imports and increasing local value addition. He noted that the policy draws inspiration from manufacturing models adopted by countries such as India, Vietnam, and Bangladesh, where electronics production has become a key contributor to exports and economic growth.
Under the policy framework, mandatory export targets have been described as counterproductive, with reference to experiences in the auto sector. While quality certification will remain mandatory for exports, it is not intended to be enforced in a coercive manner. The policy also calls for the establishment of government run local testing laboratories to support quality assurance and compliance with international standards. To prevent under invoicing, valuation rulings are proposed, and both completely built units and locally manufactured mobile phones are recommended to be placed under the Third Schedule of sales tax. Export targets are proposed to be directly linked with the implementation of Tax Increment Financing, aligning fiscal incentives with performance outcomes.
The policy introduces specific localization and assembly requirements, directing EDB to define minimum component thresholds. Smartphones assembled locally will require at least 40 parts per semi knocked down kit, while feature phones will require 15 parts. A minimum tariff gap of 30 percent between completely built units and semi knocked down imports has also been proposed to encourage local assembly. Additionally, the Tax Increment Financing levy may apply to both CBU and SKD imports. The policy acknowledges that e waste management remains a complex challenge and will require careful handling as the sector expands.
Haroon Akhtar Khan emphasized that phased localization will be adopted to attract foreign investment in high technology manufacturing and ensure sustainable industrial growth. Special focus will be placed on the local production of key components such as motherboards, printed circuit boards, electronic parts, and display components. He reiterated that Prime Minister Shehbaz Sharif envisions transforming Pakistan into an export base for global brands and integrating the country into global value chains. Mobile manufacturers informed the meeting that major international brands including Samsung, Xiaomi, Oppo, Vivo, Nokia, and others have been identified as potential investors under the new policy framework.
The meeting also highlighted that expansion in the mobile manufacturing sector is expected to support other electronics industries and contribute to broader industrial development. Haroon Akhtar Khan said the policy is designed to introduce an export oriented and globally competitive industrial framework aligned with international standards. Strict compliance mechanisms will be enforced, with incentives withdrawn and penalties imposed in cases of violations related to localization targets, reporting requirements, or operational obligations. Non compliance could result in suspension of import licences and financial penalties. Mobile manufacturers reiterated the need for quality certification for exports and supported the establishment of local testing and certification laboratories. The meeting was attended by Secretary Industries and Production Saif Anjum, EDB CEO Hammad Mansoor, and representatives of Pakistan Mobile Phone Manufacturers Association.
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