Pakistan's mobile phone industry misses localisation target as value addition remains at 10-15%

Pakistan’s mobile-phone industry has not moved beyond limited local value addition, which remains at 10-15% against a 49% goal set for June 2023. Profit by Pakistan Today, citing a PRIME policy brief, reported that more than 35 international manufacturers set up production facilities, but incentives have largely supported assembly rather than local component-making.

A key obstacle is the tariff gap: parts imported in assembly kits face zero customs duty, while duties on local manufacturers’ raw materials and inputs range from 20-30%. Customs data put FY26 mobile-phone imports at about Rs520 billion, including Rs420 billion for assembly kits; PRIME also proposed changing the sales-tax rate on imported phones above $500 and tying incentives to measurable localisation, production and export results. The proposed 2026-33 policy aims to expand local components and exports, with penalties for missed commitments.