Mobile imports may face excise duty

Amid a target of $400 million in refurbished mobile phone re-exports, the government is likely to impose a federal excise duty to address competitive constraints arising from the Pakistan–China Free Trade Agreement under a proposed Mobile and Electronics Manufacturing Framework.

The government also plans to set up a Rs56 billion technology investment fund to boost local manufacturing of mobile phones and other electronic devices.

The Engineering Development Board (EDB) has finalised the Mobile and Electronics Manufacturing Framework, under which refurbished mobile re-exports are projected to generate $400 million annually. The Ministry of Industries and Production is now set to submit the framework to Prime Minister Shehbaz Sharif for approval.

Sources told The Express Tribune that the government plans to impose a 20% federal excise duty on the completely built unit (CBU) structure of new mobile phones. At present, there is zero federal excise duty on such imports. Under the proposed policy, the government also plans to impose a 10% customs duty on the CBU structure of notebooks, desktops and tablets. Customs duty of up to 10% will also be imposed on the completely knocked down (CKD) structure. Initially, a 5% duty will be levied, which will be increased to 10% at a later stage.

As part of the re-export of refurbished phones and laptops, the government plans to establish a dedicated refurbishment-for-re-export regime within export processing zones. Gated space of around one acre may be reserved to set up refurbishment facilities by investors. For mobile phones, 30 to 40 million units can be refurbished and exported annually, earning export revenue of $300 million to $400 million.

Under the first option, imports will be allowed under a temporary import for processing and re-export regime without foreign exchange remittance at the import stage. This will be supported by a service agreement and secured through a bank guarantee. Goods will remain in a bonded facility under customs supervision, with mandatory IMEI declaration and blocking, along with time-bound re-export to prevent diversion to the domestic market.

Under the second option, imports may be allowed on a regular commercial basis with full foreign exchange remittance through letters of credit or contracts, followed by refurbishment and re-export to global markets. Such imports will operate under a bonded or export facilitation scheme regime with strict inventory reconciliation, IMEI controls and export realisation requirements to ensure compliance and prevent leakage into the local market.

A high-level meeting of the Engineering Development Board was chaired by Special Assistant to the Prime Minister Haroon Akhtar Khan to review and finalise the Mobile and Electronic Devices Manufacturing Policy 2026-33.

Federal Secretary for Industries and Production Saif Anjum, Chief Executive Officer EDB Hammad Mansoor and other senior officials attended the meeting. Detailed deliberations were held on the policy framework prepared by the EDB, which is now ready to be presented to the prime minister for approval.

Speaking on the occasion, Akhtar Khan said that, in line with the prime minister's vision, Pakistan would formally commence large-scale local manufacturing of mobile phones and electronic devices. He termed the Mobile and Electronics Policy 2026-33 a milestone initiative for the industrial sector, saying it would significantly enhance exports and strengthen the manufacturing base.

He further said that leading global companies, including Apple and Samsung, would be invited to establish manufacturing plants in Pakistan. The policy is expected to promote employment generation, technology transfer and foreign investment.

Highlighting the strategic objective of the framework, he said Pakistan aims to emerge as a regional hub for mobile and electronics manufacturing.

CEO EDB Hammad Mansoor told the meeting that re-exports of refurbished mobile phones are projected to generate annual revenues of $300 million to $400 million. The policy also recommends establishing a dedicated Mobile and Electronics Devices Cell within the EDB to ensure effective implementation and coordination.

The finalised framework reflects the government's commitment to industrial modernisation, export-led growth and positioning Pakistan as a competitive player in the global electronics value chain.