Pakistan has reached a significant juncture in its mobile phone assembly industry, marked by a surge in locally assembled devices dominating the domestic market. The market share of these locally assembled phones soared from 34% in 2019 to an impressive nearly 95% by 2025. The Pakistan Telecommunication Authority (PTA) played a pivotal role during this transition by issuing 37 mobile manufacturing licenses, enabling almost all global brands to establish local assembly—Apple remains a notable exception.
Despite this progress, the situation regarding true localization is less encouraging. Currently, over 90% of device components are imported, reflecting a gap that the Engineering Development Board (EDB) aims to address through a new Mobile Phone Manufacturing Policy set for 2026-2033, which awaits the Prime Minister’s approval.
Mobile Manufacturing Policy 2026-2033: Ambitious Targets & Incentives
The proposed policy seeks to transform Pakistan from a mere assembler of mobile devices into a competitive player in the global electronics manufacturing landscape. One of its key objectives is to achieve a localization target of 50% by 2033, while also aiming to push mobile phone exports beyond $500 million.
To facilitate this transformation, the policy introduces the Technology Innovation Fund (TIF). This initiative will impose progressive levies ranging from 1% to 5% on imported Completely Built Up (CBU) and Completely Knocked Down (CKD) components. Over the course of the next seven years, the government anticipates raising PKR 104 billion, which will subsequently provide an 8% rebate on exports.
Additionally, Original Equipment Manufacturers (OEMs) must meet stringent operational conditions to benefit from TIF incentives. They are required to capture at least a 10% export market share in their main brand’s designated territories, as well as ensure compliance with international standards such as CE Marking, ISO 14001, and e-waste directives within two years of the policy’s enactment.
Market Demand Shift: A Look Back
The rapid transition from commercial imports to local assembly in the mobile phone market is evident in recent data. The following table illustrates the evolution of market demand from 2019 to 2025:
| Calendar Year (CY) | Commercial Imports (Million Units) | Local Assembly & Manufacturing (Million Units) |
| 2019 | 16.0 | 12.0 |
| 2020 | 25.0 | 13.0 |
| 2021 | 10.3 | 24.7 |
| 2022 | 1.5 | 21.9 |
| 2023 | 1.6 | 21.3 |
| 2024 | 1.7 | 31.4 |
| 2025 | 2.0 | 32.7 |
Refurbished Phones & Global Tech Giants
In an effort to enhance the local industry, the government is keen on attracting major tech players such as Apple and Samsung to establish manufacturing bases in Pakistan. The policy also specifically aims to tap into the burgeoning refurbished phone market, purposing to import used phones exclusively for refurbishment and subsequent re-export. Officials project that the industry has the potential to refurbish and export 30 to 40 million units each year, targeting $300 to $400 million in annual revenue.
Industry Criticisms & Roadblocks
Despite the ambitious vision outlined in the new policy, industry experts have raised several concerns regarding its feasibility. Competing on a global scale proves to be challenging, as countries like China and Vietnam dominate critical segments of mobile production. Moreover, emerging markets, such as Africa, have their own free-trade agreements that further compound Pakistan’s competitive disadvantages.
Additionally, Pakistan lacks the required supply chains and international free trade agreements, while the policy does not clearly explain how it intends to facilitate entry into foreign markets. The 50% localization goal, while ambitious, is described as lacking in operational clarity and concrete details.
Furthermore, experts warn that the potential refurbishment rates for imported used phones are low, estimating only 20 out of every 100 units imported may be suitable for export. To achieve its ambitious refurbishment target, Pakistan would need to import between $2 to $2.5 billion worth of used devices.
Finally, the framework appears to favor established international brands. Industry commentators argue that nurturing local talent and companies should take precedence, as building a strong local brand ecosystem could pave the way for a unique global niche, comparable to the success stories from China with companies like Xiaomi and Oppo. Simply assembling devices for foreign brands may not lead to sustainable economic growth for Pakistan in the long run.
For more insights on this pivotal topic, read the full article Here.
Image Credit: www.techjuice.pk
