A new report on Pakistan’s mobile manufacturing policy has raised serious concerns over the country’s telecom taxation structure and the overall effectiveness of local manufacturing initiatives. According to the findings, Pakistan’s mobile manufacturing policy has failed to achieve meaningful localization while high smartphone taxes continue to increase digital inequality and limit access to modern technology.
The report, released by Prime Institute, states that excessive taxes and tariffs on smartphones are making devices increasingly unaffordable for consumers, particularly lower-income users. Analysts argue that while the government promoted local assembly under the Mobile Device Manufacturing Policy (MDMP), the country still relies heavily on imported components and semi-knocked-down (SKD) kits rather than actual manufacturing.
Industry experts believe the policy has focused more on assembly operations instead of building a complete electronics manufacturing ecosystem. Despite claims that most local demand is now fulfilled through domestically assembled phones, critical components such as chipsets, displays, and motherboards are still imported from abroad.
The report also highlights that Pakistan’s heavy tax burden on mobile devices is slowing digital adoption and affecting the country’s readiness for emerging technologies like 5G. Consumers importing premium smartphones often face cumulative taxes exceeding 50 percent of the device price, significantly increasing retail costs.
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Experts warn that additional proposed levies under the upcoming Mobile and Electronic Devices Manufacturing Policy 2026–33 may further increase prices without substantially improving domestic production capabilities. The government is considering new duties and regulatory measures aimed at encouraging localization and reducing reliance on imports.
The report recommends lowering taxes on smartphones, investing in local component manufacturing, and creating a more stable policy environment to attract global technology brands. Analysts argue that affordable smartphones are essential for expanding digital inclusion, online education, fintech services, and nationwide 5G connectivity.
Lawmakers and industry stakeholders have also recently called for a review of Pakistan’s mobile taxation regime, saying the current structure negatively impacts affordability and access to technology.
