The federal government is set to unveil an ambitious Mobile and Electronics Manufacturing Framework (2026-33), aiming to generate up to $400 million annually through the re-export of refurbished mobile phones while establishing a massive Rs56 billion technology investment fund.
The policy, finalized by the Engineering Development Board (EDB) and reviewed by Special Assistant to the Prime Minister Haroon Akhtar Khan, is now headed to Prime Minister Shehbaz Sharif for final approval. The framework seeks to transform Pakistan into a regional electronics hub and attract global giants like Apple and Samsung to set up local assembly plants.
New Tax Regime for Electronic Imports
To protect local manufacturers and address competitive imbalances caused by the Pakistan-China Free Trade Agreement, the government is proposing significant changes to the duty structure:
- Mobile Phones: A 20% Federal Excise Duty (FED) is proposed on Completely Built Units (CBU). Currently, these imports face zero FED.
- Computing Devices: A 10% Customs Duty will be slapped on the CBU structure of notebooks, desktops, and tablets.
- CKD Kits: For locally assembled units, a 5% duty will be levied on Completely Knocked Down (CKD) kits, eventually rising to 10%.
The “Refurbished for Re-Export” Strategy
A core pillar of the new policy is the creation of dedicated refurbishment zones within Export Processing Zones. The government estimates that 30 to 40 million units can be refurbished and exported every year.
To prevent these used devices from leaking into the domestic market, the EDB has proposed two strict regulatory tracks:
- Temporary Import Track: Units imported for processing without foreign exchange remittance, secured by bank guarantees and mandatory IMEI blocking within bonded facilities.
- Commercial Track: Imports via standard Letters of Credit (LCs) with full foreign exchange remittance, subject to rigorous inventory reconciliation and export realization requirements.
Institutional Support and Implementation
The Ministry of Industries and Production plans to establish a dedicated Mobile and Electronics Devices Cell within the EDB to oversee the rollout.
“This policy is a milestone for our industrial sector,” stated Haroon Akhtar Khan during the final review meeting. “In line with the Prime Minister’s vision, we are moving toward large-scale manufacturing that will drive employment, technology transfer, and foreign investment.”
The framework also addresses long-standing procurement issues, including a commitment to approve the 2025 Public Procurement Rules by June to ensure transparency and end non-competitive bidding for state-owned enterprises.
