Pakistan reduces import duties on smartphones to boost local assembly amid rising imports

The Pakistani government has cut import duties on various smartphone categories, aiming to promote local manufacturing while addressing surging mobile imports in a major tariff overhaul for 2026-27.

Pakistan has cut import duties on mobile phones for fiscal 2026-27, easing charges on both premium handsets and lower-priced models as part of a wider tariff overhaul. According to a brief issued by the Ministry of Commerce, the regulatory duty on smartphones priced above $500 has been reduced to Rs17,600 per handset from Rs22,000, while the additional customs duty on the relevant phone categories has been lowered to 4% from 6%.

The revised structure also trims fixed regulatory duty slabs for completely built-up smartphones across the price range. Phones valued at up to $30 will now attract Rs240, while devices in the $30-$100 bracket fall to Rs2,400. The duty for the $100-$200 band has been cut to Rs6,000, for $200-$350 to Rs8,800, and for $350-$500 to Rs12,000. For premium handsets above $500, the reduction is Rs4,400 per unit, or 20%.

For phones imported in completely knocked-down or semi-knocked-down form, the ministry said regulatory duty has been lowered to 4% from 5%, with additional customs duty also reduced to 4%. The government has framed the changes as part of the National Tariff Policy 2025-30, signalling a continued effort to rationalise import duties while still supporting local assembly and manufacturing.

The move comes after a sharp rise in mobile-phone imports. Profit Pakistan Today reported that imports of smartphones and cellular phones climbed to $1.888 billion in FY2025-26 from $1.497 billion a year earlier, while imports of fully built smartphones more than doubled to $357.7 million. The Ministry of Commerce also noted that the Mobile Device Manufacturing Policy 2020-25 has expired and that a successor policy has yet to be approved, although incentives already granted to manufacturers and assemblers remain protected under the Fifth Schedule of the Customs Act 1969.

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