Pakistan is targeting up to 50 percent domestic value addition in mobile device manufacturing under a new policy being formulated by the government, which aims to move the industry from import-dependent assembly towards local component manufacturing and higher-value production, according to Business Recorder. An official document shows that the Ministry of Industries and Production is evaluating a new Mobile Device Manufacturing Policy that builds on the investment attracted under the previous policy for 2020 to 2023, which helped set up local and foreign-invested assembly plants. The proposed policy would raise localisation gradually, through the development of local component manufacturing and a supporting industrial ecosystem. Domestic value addition is currently estimated at around 10 to 20 percent, which leaves considerable room for improvement.
The mobile phone policy is one of several sector-specific plans that the ministry is preparing, including policies for the automotive industry and battery energy storage systems, as part of a broader effort to reduce reliance on imported components. In electronics, the government intends to promote local component production, technology transfer, and supporting industries, which would create opportunities for local suppliers and raise the industry’s contribution to industrial development. Business Recorder noted that the policy’s success will depend on whether a competitive local component supply chain develops and whether Pakistan can attract investment in higher-value manufacturing. Assembly of imported kits requires relatively little local input, while making components such as casings, batteries, and circuit boards needs investment in factories and skills.
The scale of local assembly is already large. Pakistan’s plants produced 20.08 million handsets in January to September 2026, compared with 2.85 million units imported commercially, according to the official data cited. The locally assembled handsets included about 8 million smartphones and 12 million 2G phones, and the Pakistan Telecommunication Authority (PTA) data shows that smartphones make up 71 percent of active mobile devices on local networks, with 2G phones accounting for the other 29 percent. The mobile phone import bill fell 16.6 percent in dollar terms in the first quarter of fiscal year 2026-27 to $417.24 million from about $500.01 million a year earlier, and in rupee terms the July to September bill fell 18 percent to Rs116.01 billion from Rs141.42 billion. Imports rose 7.1 percent month on month in September to $143.14 million but remained 28.2 percent below the $199.27 million recorded in September 2025.
Production rankings have shifted this year. VGO TEL emerged as the largest local producer in the first nine months of 2026 with 2.50 million handsets, ahead of Infinix with 1.96 million and Itel with 1.59 million. TECNO made 1.16 million units, Samsung 1.04 million, Vivo 0.99 million, Nokia 0.97 million, China Mobile 0.72 million, X Mobile 0.71 million, and G’FIVE 0.64 million. Infinix topped the list in 2024 with 3.98 million handsets and again in 2025 with 3.65 million, narrowly ahead of VGO TEL at 3.57 million, so the latest data shows output spread across many manufacturers and not concentrated in one brand. Business Recorder said the 2026 figures cover only nine months while the earlier years are full calendar years, and that the sustainability of local assembly will depend on consumer demand, access to imported components, exchange rate stability, and the ability of assemblers to keep prices competitive. The report does not say when the new policy will be finalised or what incentives it will offer.
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