The government is set to impose a ban on the import of used mobile phones in the new Mobile and Electric Devices Manufacturing policy 2026 in order to encourage local mobile phone manufacturing.
The government has targeted a Rs 103 billion rebate on the export of mobile phones by allowing fixed and non-discretionary 8 percent Research and Development (R&D) allowance.GSMA Warns Pakistan’s New Taxes on Mobile Phones Could Deter Investors
This allowance has been calculated on the verifiable Free on Board (FoB) value of mobile devices exported by Pakistan.
The policy also proposes a ban on the manufacturing of 2G handsets in Pakistan.
The PTA will restrict the activation of the type allocation code associated with the manufacturing of 2G handsets. The regulator will also restrict registration of a five-year mobile.
The government has decided to impose penalties on mobile and electric devices companies for failure of achieving localisation in stipulated time in the proposed Mobile and Electric Devices Policy 2026-33.
The government is also set to withdraw concessions, such as all exempted or concessionary duties. The government will start applying normal tariff rates.
The companies will also face Import Licensing Restrictions. Monetary penalties shall also be imposed in the form of a surcharge equivalent to 1% of the total annual import value, in addition to any other financial liabilities prescribed under the prevailing laws and regulations.
The government is looking towards the top mobile brands to set up manufacturing facilities in Pakistan. These brands included Huawei and other top mobile phone brands.
Access to the PLI disbursement is entirely performance-driven, creating a regulatory cliff edge for non-compliant firms. The most critical non-negotiable performance thresholds are:
Reserved export market share for OEM
To strengthen Pakistan’s export competitiveness and ensure sustained integration into global value chains, each licensed OEM shall be required to secure an export market share equivalent to at least ten percent of its principal’s designated territory.
This export-performance obligation shall form part of the eligibility framework for policy incentives and shall be monitored through verifiable export data. Compliance with this threshold will reinforce Pakistan’s industrial positioning, enhance foreign exchange earnings, and promote long-term market diversification for locally manufactured devices.
Certification Mandates: By Year 2, compliance with international standards, including CE Marking, ISO 14001 (Environmental), and WEEE (e-waste) directives, becomes mandatory for continued incentive eligibility.
