Mobile industry stagnant at 10%-15% localisation

Pakistan’s mobile phone sector is adding only 10% to 15% of a handset’s value locally, despite more than 35 manufacturers setting up plants, The Express Tribune reported. A PRIME policy review says the 2020 framework brought assemblers to Pakistan but did not build a competitive network of domestic component suppliers. It points to a tariff mismatch: imported parts in assembly kits face no customs duty, while inputs for locally made components are taxed at 20% to 30%.

The industry produced 21.94 million phones in 2022, yet local value addition remained at 10%, well below the 49% goal for June 2023. Pakistan spent about Rs520 billion on mobile imports in FY26, including Rs420 billion for assembly kits, according to figures cited in the review. PRIME advocates tying concessions to measurable domestic production and exports, while the proposed 2026-33 policy puts greater weight on components, technology transfer and exports.