Pakistan is preparing to introduce a federal excise duty on imported mobile phones and electronic devices. This move is part of a new Mobile and Electronics Manufacturing Framework aimed at strengthening domestic production and boosting exports. The policy also seeks to address competitive challenges arising from the Pakistan-China Free Trade Agreement.
The government plans to establish a Rs56 billion technology investment fund to support local manufacturing of mobile phones, laptops, desktops, tablets, and other electronics. Officials say the initiative could turn Pakistan into a regional hub for electronics production while creating jobs and attracting foreign investment.
Under the proposed framework, refurbished mobile phones and laptops could be re-exported through a dedicated scheme within export processing zones. Around one acre of space would be reserved for refurbishment facilities. These facilities are expected to handle 30 to 40 million mobile units each year, generating an estimated $300 million to $400 million in annual export revenue.
The policy proposes a 20% federal excise duty on completely built units (CBU) of new mobile phones, which currently carry no excise duty. A 10% customs duty would also be applied to notebooks, desktops, tablets, and completely knocked-down (CKD) kits. Initially, the duty would start at 5% for CKD units and increase to 10% later.
Imported goods could enter under two models. The first would allow temporary imports for processing and re-export without foreign exchange remittance at the import stage. The second would permit regular commercial imports with full foreign exchange remittance through letters of credit or contracts. Both systems would operate under bonded facilities, with strict IMEI registration, inventory checks, and time-bound export requirements to prevent diversion into the domestic market.
The Engineering Development Board (EDB) finalized the framework after a high-level meeting chaired by Special Assistant to the Prime Minister Haroon Akhtar Khan. Federal Secretary for Industries and Production Saif Anjum, EDB CEO Hammad Mansoor, and senior officials attended. The framework is now ready to be submitted to Prime Minister Shehbaz Sharif for approval.
