The government has announced a 20% reduction in regulatory duty on imported mobile phones as part of the 2026-27 federal budget, with the revised rates set to take effect from July 1, 2026.
According to officials, the measure is expected to provide relief of up to Rs. 14,000 per device, depending on the category and value of the imported smartphone. The decision forms part of a broader tariff rationalization strategy aimed at streamlining import duties while maintaining revenue generation.
Federal Board of Revenue (FBR) officials have stated that Pakistan’s existing mobile phone taxation framework remains balanced and continues to support government revenue objectives. They also noted that approximately 95% of mobile phones sold in the country are assembled locally, while imported devices account for a relatively small share of the market.
The policy has sparked discussion among consumers and industry stakeholders regarding whether tax relief should primarily benefit premium smartphone imports or be directed toward more affordable devices used by a larger segment of the population.
The development reflects ongoing efforts to balance consumer affordability, local manufacturing growth, and fiscal considerations within Pakistan’s mobile phone industry.