New mobile device policy proposes ban on used phone imports

ISLAMABAD: The federal government has decided to impose a ban on the import of used mobile phones under the new Mobile and Electronic Devices Manufacturing Policy 2026–33.

According to sources, the policy was announced on Monday by the Ministry of Industries and Production.

The policy has been prepared by the Engineering Development Board (EDB) in collaboration with local mobile phone manufacturers.

Its aim is to encourage global brands to invest in Pakistan and to promote export-led growth through local manufacturing. Models from countries such as India, Vietnam and Bangladesh were taken into consideration while framing the policy.

The policy was presented in a high-level meeting chaired by Prime Minister’s Special Assistant on Industries and Production Haroon Akhtar where the objectives, progress and implementation mechanisms were discussed.

During the meeting, a detailed briefing was given on the policy, which also included an assessment of the benefits of local assembling compared with completely imported mobile phones.

Addressing the meeting, Haroon Akhtar said that the primary objective of the policy is to create local employment opportunities and strengthen Pakistan’s industrial base.

Under the policy framework, mandatory export targets have been declared ineffective. Citing the example of the auto sector, it was stated that such conditions do not prove productive. Quality certification for exports has been made necessary; however, it will be facilitated rather than imposed forcibly. The policy also proposes the establishment of government-level local testing laboratories.

According to the policy, penalties linked to performance targets have been proposed, while the EDB has been instructed to fix the minimum number of components required for assembling.

For smartphones, 40 components in SKD kits will be mandatory, while for feature phones the requirement will be 15 components. It has been proposed to institutionalise valuation rulings with the involvement of the EDB, the Pakistan Mobile Phone Manufacturers Association and the Customs Valuation Directorate.

To curb under-invoicing, it has been recommended that completely built units (CBU) of mobile phones and locally manufactured mobile phones be included in the third schedule of sales tax, while linking export targets to the implementation of Tax Incremental Financing (TIF) has also been proposed.

The policy proposes maintaining a minimum tariff differential of 30 per cent between CBU and SKD imports, and expanding the application of the TIF levy to both types of imports. At the same time, e-waste management has been described as a complex issue, and it has been emphasised that a careful strategy should be adopted to deal with it.