The government is gearing up to hit mobile and electronics manufacturing companies with tough penalties if they don’t meet localisation targets within the set timeframe under a new policy.
According to the Mobile and Electronics Device Manufacturing Policy 2026-33, the government will take back benefits like duty exemptions and concessionary rates. Regular tariff rates will apply, and companies could also face import licensing hurdles.
In addition, firms not complying will have to pay a surcharge worth 1% of their total annual import value, alongside any other financial commitments required by current laws. The government also has its sights set on a massive Rs103 billion export rebate for mobile phones, thanks to an 8% research and development allowance. This allowance will be calculated based on the actual free-on-board value of mobile devices shipped from Pakistan.
The policy outlines a complete ban on producing 2G handsets in the country. The Pakistan Telecommunication Authority will block the activation of type-allocation codes for 2G models and stop registration for phones that are five years old. On top of that, used mobile phones could be banned from import to boost local production.
Special Assistant to Prime Minister Haroon Akhtar Khan led a meeting on the new policy on Monday, discussing its progress and implementation. He said the main aim is to create local jobs and strengthen Pakistan’s industrial backbone. Haroon Akhtar stressed that gradual localisation is the way forward, encouraging foreign investment in high-tech manufacturing and sustainable growth.
Key components like motherboards, PCBs, electronic parts, and display components are set to get special attention for local manufacturing. The special assistant reaffirmed Prime Minister Shehbaz Sharif’s vision, aiming to make Pakistan a global export hub and part of international value chains.
During the meeting, representatives from mobile companies said big names like Samsung, Xiaomi, Oppo, Vivo, and Nokia are likely to invest in Pakistan under the new policy. They added that the rise of the mobile industry would spark wider growth across other electronics sectors.
Haroon Akhtar also pointed out that the new policy will bring an export-driven, globally competitive industry framework in line with international standards. He noted that strict compliance will be enforced, and both incentives and penalties will be used to make sure companies play by the rules.
