Pakistan to Ban Used Mobile Phone Imports Under New Manufacturing Policy 2026–33

Pakistan is set to ban the import of used mobile phones as part of its newly unveiled Mobile and Electronic Devices Manufacturing Policy 2026–33, signalling a major shift in how the country plans to grow its electronics sector.

The announcement was made on Monday by the Ministry of Industries and Production while presenting the policy during a high-level meeting in Islamabad. Officials described the move as a necessary step to protect local manufacturers, discourage under-invoicing, and push Pakistan toward export-led industrial growth.

Prepared by the Engineering Development Board (EDB) in close coordination with local mobile phone manufacturers, the policy aims to position Pakistan alongside regional manufacturing hubs such as India, Vietnam, and Bangladesh. The policy was presented during a meeting chaired by Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, who reviewed progress and sought alignment among key stakeholders on implementation.

A detailed briefing was shared with participants, including an assessment comparing local assembly models with complete built unit (CBU) imports, highlighting the economic and employment benefits of domestic production.

Ban on used mobile phones: What the government aims to achieve

Officials said the ban on used mobile phones is intended to:

• Curb undocumented imports and under-invoicing
• Protect locally assembled and manufactured devices
• Encourage consumers to shift toward compliant, locally produced phones
• Improve quality and safety standards in the domestic market

Under the new framework, both CBU imports and locally manufactured phones are proposed to be placed under the Third Schedule of Sales Tax, a move aimed at improving transparency and tax compliance.

Key policy principles outlined

Addressing the meeting, Haroon Akhtar Khan said the core objective of the policy is to create local employment and strengthen Pakistan’s industrial base, while avoiding mistakes made in previous sectoral policies.

He outlined several guiding principles under the policy:

• Mandatory export targets will not be imposed, as they have proven counterproductive in sectors such as automobiles
• Quality certification for exports is mandatory, but should not be enforced coercively
• The government should establish local testing and certification laboratories
• EDB will define minimum SKD kit requirements, including:

• • 40 parts per SKD kit for smartphones

  • 15 parts per SKD kit for feature phones

• Valuation rulings should be institutionalised with participation from EDB, PMPMA, and Customs
• A minimum 30 percent tariff gap between CBU and SKD imports will be ensured
• Tax Increment Financing (TIF) will be directly linked with export performance
• E-waste management was acknowledged as a complex but critical challenge

Phased localisation and focus on high-tech components

The policy adopts a phased localisation model, designed to gradually move Pakistan up the manufacturing value chain rather than limiting it to basic assembly.

Special emphasis will be placed on the local manufacturing of high-value components, including:

• Motherboards
• Printed circuit boards (PCBs)
• Electronic components
• Display modules

According to officials, this approach is aimed at attracting foreign direct investment in high-tech manufacturing while ensuring long-term sustainability rather than short-term assembly-driven growth.

Global brands eye Pakistan under new framework

Representatives of mobile phone manufacturers informed the meeting that leading global brands are closely watching Pakistan’s new policy framework.

Brands such as Samsung, Xiaomi, Oppo, Vivo, Nokia, and others were identified as potential investors if policy consistency, tariff protection, and compliance mechanisms are enforced effectively.

Haroon Akhtar Khan reiterated that Prime Minister Shehbaz Sharif’s vision is to transform Pakistan into a regional export base for global electronics brands, allowing the country to integrate into international value chains.

Strict compliance, penalties, and enforcement mechanisms

The government has made it clear that incentives under the policy will be performance-based.

Strict compliance measures will apply, with penalties for violations related to:

• Localisation targets
• Reporting requirements
• Operational obligations

In cases of non-compliance, the committee has approved financial penalties and even suspension of import licences, signalling a tougher enforcement regime than previous industrial policies.

Industry calls for local testing and certification labs

Mobile manufacturers stressed that quality certification is critical for accessing international markets and urged the government to establish state-backed testing and certification facilities.

Such labs, they argued, would reduce export bottlenecks, cut compliance costs, and help Pakistani-made devices meet international technical standards.

What this policy means for Pakistan’s electronics sector

Officials noted that growth in mobile manufacturing will have a spillover effect across the broader electronics ecosystem, including home appliances, consumer electronics, and component manufacturing.

The policy aims to introduce a globally competitive, export-oriented industrial framework while balancing regulation, incentives, and enforcement.

Haroon Akhtar Khan concluded by directing both the public and private sectors to work closely together to ensure the successful implementation of the policy and to achieve Pakistan’s long-term goals of industrial transformation and export-led growth.

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