Under the new Mobile and Electronic Devices Manufacturing Policy 2026-33, which the Ministry of Industries and Production unveiled on Monday, the federal government intends to prohibit the import of used cell phones.
The Engineering Development Board (EDB) worked with regional mobile phone manufacturers to create the policy. It seeks to draw in international brands and encourage export-driven growth through domestic production, emulating strategies used by nations like Bangladesh, Vietnam, and India.
The Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, presided over a high-level meeting when the policy was presented in order to assess progress and align stakeholders on its goals and implementation framework.
A thorough explanation of the concept was provided, along with a comparison of the advantages of local assembly vs full importation. Speaking to the group, Haroon Akhtar Khan said that the policy’s main goals are to strengthen Pakistan’s industrial base and create jobs locally.
Mandatory export objectives have been described as counterproductive within the policy framework, using the auto industry as an example.
Exports must have quality certification, however this need should not be enforced by force. Additionally, the proposal asks for the creation of local testing laboratories run by the government.
The policy instructs EDB to provide minimum component requirements for assembly and suggests penalties based on performance goals. Feature phones will need 15 pieces per SKD kit, compared to 40 parts for smartphones. Valuation rulings are to be institutionalised with participation from EDB, PMPMA, and the Customs valuation directorate
It is advised that both locally produced mobile phones and completely built units (CBUs) be placed within the Third Schedule of sales tax in order to avoid under-invoicing.
It is suggested that the implementation of Tax Increment Financing (TIF) be closely associated with export targets.
The policy suggests that the Tax Increment Financing tax may be applied to both CBU and SKD imports, and it establishes a minimum 30 percent tariff difference between CBU and SKD imports.
It also points out that e-waste disposal is still a complicated problem that needs to be handled carefully.
According to Haroon Akhtar Khan, the program will implement gradual localization to guarantee sustainable industrial growth and attract international investment in high-tech production.
Local production of essential components, including as motherboards, PCBs, electronic parts, and display components, will be given particular attention.
To prevent under-invoicing, it is recommended that both locally manufactured mobile phones and completely built units (CBUs) be included in the Third Schedule of sales tax.
It is recommended that export goals be closely linked to the application of Tax Increment Financing (TIF).
The policy specifies a minimum 30 percent tariff difference between CBU and SKD imports and indicates that the levy Increment Financing levy may be applied to both. It also highlights the fact that disposing of e-waste is still a challenging issue that requires caution.
In order to ensure sustainable industrial growth and draw foreign investment in high-tech production, the program would gradually localize, according to Haroon Akhtar Khan. Particular focus will be placed on local production of crucial components, including as motherboards, PCBs, electronic parts, and display components.
In order to comply with international standards, mobile manufacturers emphasized the necessity of quality certification for exports and suggested setting up regional testing and certification facilities.
In order to guarantee the successful execution of the program and accomplish Pakistan’s objectives of export-led growth and industrial transformation, Haroon Akhtar Khan instructed players in the public and private sectors to collaborate closely.
EDB CEO Hammad Mansoor, Secretary Industries and Production Saif Anjum, and members of the Pakistan Mobile Phone Manufacturers Association (PMPMA) were present at the conference.
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