Islamabad – Pakistan is poised to accelerate its mobile phone manufacturing sector and embrace 5G technology with the finalization of the Mobile and Electronic Devices Manufacturing Policy 2026-33, coinciding with a spectrum auction. The new policy, approved in a meeting chaired by Special Assistant to the Prime Minister Haroon Akhtar Khan, aims to boost exports and attract investment into the country’s burgeoning electronics industry.
The policy’s timing is strategic. The upcoming 5G spectrum auction is expected to expand 4G coverage and, crucially, drive demand for smartphones, including 5G-compatible devices. According to Amir Allawala, a senior member of the Pakistan Mobile Phone Manufacturers Association, telecommunications companies will require approximately five to six months following the spectrum acquisition to establish the necessary infrastructure for 5G services in urban centers and enhance 4G networks in other areas. “The mobile phone industry also needs around the same time to shift to 5G sets,” Allawala stated, adding that many manufacturers are already transitioning production lines from feature phones to smartphones.
Boosting Exports and Local Manufacturing
A key component of the policy is an 8 percent incentive on mobile phone exports. This is coupled with a reduction in customs duties on imported parts, designed to lower production costs for local manufacturers. Conversely, the policy proposes higher duties on the import of completely built-up (CBU) mobile phones and accessories like chargers and hands-free devices. This aims to incentivize consumers to purchase locally assembled devices and support domestic production.
The move comes as Pakistan’s mobile phone assembly reached units in , with feature phones accounting for around 40 percent of the total. With domestic consumption potentially reaching 40 million sets annually, the government recognizes the importance of export incentives to further stimulate the industry. The policy also calls for the establishment of a dedicated Mobile & Electronics Devices Cell within the Engineering Development Board (EDB) to oversee implementation and coordination.
A Milestone for Pakistan’s Industrial Sector
Haroon Akhtar Khan described the policy as a “milestone initiative,” emphasizing its potential to extend beyond mobile phones and benefit the broader industrial sector. “Starting with mobile phones, [the policy] will eventually help the country’s industrial sector, as electronics have dominated all spheres,” he said.
Implications for the Mobile Phone Market
Currently, Pakistan has 37 licensed mobile set manufacturers. The new policy is expected to encourage further investment and expansion within the sector. The shift towards smartphone production, driven by the 5G rollout and policy incentives, represents a significant evolution for the Pakistani mobile phone market. The increased duties on imported CBUs are likely to raise the prices of imported phones, making locally assembled devices more competitive.
Broader Economic Context
The policy aligns with a broader government strategy to promote local manufacturing and reduce reliance on imports. Pakistan has been actively seeking to attract foreign investment in its manufacturing sector, and the new mobile phone policy is a key part of this effort. The success of the policy will depend on effective implementation and coordination between government agencies and the private sector.
The timing of the policy also comes after a period of significant economic challenges for Pakistan. Boosting exports and attracting foreign investment are crucial for stabilizing the country’s economy and creating jobs. The mobile phone sector, with its potential for growth and innovation, is seen as a key driver of economic development.
Potential Challenges
While the policy offers significant incentives for local manufacturers, challenges remain. Ensuring a stable supply of components, maintaining competitive pricing, and adapting to rapidly changing technology are all critical factors. The success of the policy will also depend on the government’s ability to create a favorable business environment and address infrastructure constraints.
the policy’s effectiveness in curbing the import of used mobile phones, as suggested by recent reports, remains to be seen. A ban on used phone imports, if implemented, could potentially disrupt the market and impact affordability for some consumers. However, proponents argue that it will encourage the adoption of newer, locally manufactured devices and promote innovation.
The government is now awaiting Prime Minister approval for the policy, after which its implementation will begin. The coming months will be crucial in determining whether the Mobile and Electronic Devices Manufacturing Policy 2026-33 can deliver on its promise of transforming Pakistan into a regional hub for mobile phone manufacturing and accelerating the adoption of 5G technology.
