Pakistan reduces regulatory and customs duties on imported smartphones for FY2026‑27
The government announced a cut in regulatory duty by up to 20% and a reduction in additional customs duty from 6% to 4% on imported mobile phones, aiming to lower costs for consumers and boost the sector.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Technology sector benefits from lower smartphone duties, creating a Buy bias for related PSX tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- TechnologyPositively affected
Companies
Companies Mentioned
- ISL· Positively affected · Buy bias
Mentions in This Briefing
Sectors: Technology — Positive · Buy bias. PSX tickers: ISL. Technology sector benefits from lower smartphone duties, creating a Buy bias for related PSX tickers.
Full Story
Open on Business Recorder## Government tariff revision
The Ministry of Commerce confirmed that, under the FY2026‑27 budget and the National Tariff Policy 2025‑30, regulatory and additional customs duties on imported mobile phones will be lowered.
## Duty reductions
- Premium smartphones priced above $500 will see the regulatory duty fall from Rs22,000 to Rs17,600 per unit, a Rs4,400 (20%) cut. - The Additional Customs Duty (ACD) on all smartphone and cellular‑phone categories is reduced from 6% to 4%. - For devices imported in CKD/SKD form, the regulatory duty drops from 5% to 4% and the ACD also falls from 6% to 4%.
## Context and rationale
Imports of smartphones and cellular phones surged in FY2025‑26, rising from $1.497 billion to $1.888 billion, while completely built‑up (CBU) smartphone imports more than doubled to $357.7 million. The duty cuts are intended to ease the cost burden on imported handsets while the government continues to encourage domestic assembly and manufacturing.
## Policy background
The Mobile Device Manufacturing Policy 2020‑25 has expired, and a new policy is pending approval. Nevertheless, incentives granted under the expired policy remain protected under the Fifth Schedule of the Customs Act, 1969.
## Expected impact
Lower duties are expected to make imported smartphones cheaper for consumers, stimulate demand, and benefit retailers and distributors of mobile devices. The measures also align with broader efforts to develop a local mobile‑device manufacturing ecosystem.