Mobile phone exporters to benefit from new govt incentives in 2025-26 budget 

ISLAMABAD: Pakistan’s government is reportedly preparing a new policy to encourage mobile phone exports, aiming to help narrow the country’s trade deficit, industry insiders say. The announcement is expected in the federal budget for 2025-26, due on June 10. 

According to Business Recorder, a senior official from a domestic mobile phone assembler, who preferred to remain anonymous, said the government plans to introduce export rebates for locally assembled phones.  

Meanwhile, Muhammad Idrees Memon, former president of the Karachi Electronic Dealers Association (KEDA) and Karachi Chamber of Commerce and Industry (KCCI), revealed that federal and provincial authorities are developing a scheme similar to the Export Facilitation Scheme (EFS). This initiative would offer incentives to boost ‘made in Pakistan’ mobile phone exports. 

Memon also mentioned ongoing discussions between the Sindh government and KCCI about reducing or eliminating the Infrastructure Development Cess (IDC), currently charged at around 1.8 per cent on imports of mobile phone parts (CKD – completely knocked down kits). This move targets manufacturers aiming to export their products. 

According to Memon, Sindh’s export package will be finalised within days and unveiled alongside the budget. The Punjab government has already expressed support for a similar plan, with backing from the Ministry of Finance, Ministry of Commerce, Federal Board of Revenue (FBR), and Engineering Development Board (EDB). 

According to Business Recorder, Senior Sindh politicians, including Chief Minister Murad Ali Shah and provincial assembly members, are collaborating with business leaders to shape this export incentive framework. The goal is to boost exports and help offset the widening trade deficit, especially after an expected surge in US imports following recent trade talks between Islamabad and Washington. 

Pakistan currently assembles nearly all Chinese mobile brands available locally, about two dozen in total. However, all raw materials and parts are imported, limiting value addition. Removing the IDC on these imports would reduce costs and increase competitiveness abroad, Memon said, also highlighting the potential for job creation and global market expansion. 

Adding to the optimism, Aamir Allawala, CEO of Transsion Tecno Electronics, noted that Chinese companies are keen to shift export bases to Pakistan due to its lower labour cost of $140 per month as compared to $800 in China, and to avoid trade tensions affecting China. 

With local assembly covering 95 per cent of Pakistan’s mobile phone demand and import of finished phones dropping to just 5 per cent, the sector is saving significant foreign exchange. According to Pakistan Bureau of Statistics data, mobile phone imports (both CKD and completely built units) fell 14 per cent to \$1.25 billion in the first 10 months of FY25 compared to the previous year.

Industry leaders urge the government to work closely with manufacturers to seize the opportunity and develop a long-term export strategy that capitalises on shifting global trade patterns. 

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