The federal government of Pakistan is planning to impose a 20 percent federal excise duty on imported mobile phones. This initiative aims to promote local manufacturing and achieve up to $400 million in exports of refurbished devices.
The proposed measures are part of the Mobile and Electronics Manufacturing Framework, finalized by the Engineering Development Board. The framework will be submitted to Prime Minister Shehbaz Sharif for final approval.
Under the plan, authorities are considering applying a 20 percent federal excise duty on fully built-up mobile phones, known as completely built units (CBU). Currently, fully assembled handsets are not subject to any federal excise duty, making this a major shift in taxation policy.
Duties on Other Electronic Devices
The framework also proposes a 10 percent customs duty on fully built laptops, desktops, and tablets. Duties on completely knocked down (CKD) units will start at five percent and gradually increase to ten percent. This strategy is expected to encourage local assembly and reduce reliance on imports.
Technology Investment Fund
A significant part of the policy is the establishment of a Rs. 56 billion technology investment fund. The fund will support local manufacturing of mobile phones and electronic devices. It is designed to improve infrastructure and provide financial incentives to domestic producers.
Refurbished Mobile Phone Exports
Another key component of the policy is the re-export of refurbished mobile phones and laptops. Pakistan aims to process between 30 to 40 million devices annually. This initiative could generate export revenue of $300 million to $400 million.
To facilitate this, the government plans to set up dedicated refurbishment facilities in export processing zones. These facilities will operate under strict customs supervision, including IMEI registration and time-bound re-export requirements.
Two Import Models
The framework outlines two important models for implementation. The first allows temporary import of devices without foreign exchange payments, backed by bank guarantees. The second permits regular commercial imports, followed by refurbishment and export under bonded schemes. These measures are designed to make the process more efficient while encouraging investment in local production.
Expected Impact
Experts suggest that the excise duty and refurbishment initiatives could significantly strengthen Pakistan’s electronics industry. The combination of higher import duties, dedicated investment funds, and structured export programs is expected to increase local employment, boost technology adoption, and generate foreign revenue.
Overall, the proposed policy aims to reduce dependency on imported devices while positioning Pakistan as a regional hub for refurbished electronics. It represents a strategic effort to enhance industrial growth and economic resilience.
