Pakistan is set to impose a federal excise duty on Pakistan mobile imports as part of a new Mobile and Electronics Manufacturing Framework. This move aims to mitigate competitive challenges arising from the Pakistan-China Free Trade Agreement. The plan, revealed on February 18, 2026, includes a target of $400 million in refurbished mobile phone re-exports.
The government intends to establish a Rs56 billion technology investment fund to enhance local manufacturing of mobile phones and electronic devices. The Engineering Development Board has finalized the framework, which is now awaiting approval from Prime Minister Shehbaz Sharif.
Sources disclosed that a 20% federal excise duty will be applied to the completely built unit (CBU) structure of new mobile phones, which currently have no such duty. Additionally, a 10% customs duty is planned for notebooks, desktops, and tablets. A phased duty on the completely knocked down (CKD) structure will start at 5%, eventually increasing to 10%.
The framework also proposes a refurbishment-for-re-export regime within export processing zones, aiming to refurbish and export 30 to 40 million mobile units annually. This initiative could generate $300 million to $400 million in export revenue.
A high-level meeting, chaired by Special Assistant to the Prime Minister Haroon Akhtar Khan, finalized the Mobile and Electronics Devices Manufacturing Policy 2026-33. The policy seeks to transform Pakistan into a regional hub for electronics manufacturing, inviting global companies like Apple and Samsung to set up plants. The framework underscores Pakistan’s commitment to industrial modernization and export-led growth, positioning the country as a competitive player in the global electronics value chain.
Published in SouthAsianDesk, February 18th, 2026
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