Local mobile phone manufacturers have called on the government to prohibit the import of used mobile phones in an effort to bolster the domestic industry. The appeal was made during a meeting between the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), led by Chairman Abdul Rehman Aziz, and Federal Minister for Commerce Jam Kamal Khan. Representatives from the mobile phone manufacturing sector, headed by Aamir Allawala, were also present to discuss issues affecting local production.
The mobile phone manufacturers emphasized the need for a ban on used mobile phone imports, asserting that such a move would support local businesses. They also requested a fixed General Sales Tax (GST) rate to replace the current 18 percent value-based GST. According to the manufacturers, the existing system risks misdeclaration of values at the import stage, which negatively impacts the local industry.
PAAPAM Chairman Abdul Rehman Aziz further advocated for the imposition of regulatory duty (RD) on all old and used vehicles. He noted that 70 percent of used car imports, particularly those below 1,300cc, are exempt from the new RD introduced in the Finance Bill 2024-25. The budget imposed a 15 percent RD on imported used cars exceeding 1,300cc at the behest of local assemblers. However, this measure did not address the issue as a significant number of small vehicles, which are imported in large quantities, remain exempt.
In response, Minister Khan assured that these concerns would be taken up with the Ministry of Industries & Production, the Ministry of Finance, and the Federal Board of Revenue (FBR). He committed to providing all possible support to promote local manufacturing of auto parts and mobile phones, underscoring the importance of prioritizing exports.
