ISLAMABAD: Pakistan has reduced regulatory duties on imported mobile phones, lowering the levy on handsets priced above $500 to Rs17,600 per phone from Rs22,000, according to the revised tariff structure.
The government has introduced new regulatory duty slabs for mobile phones across different price categories. The move could reduce the cost of imported handsets, although the extent of any price cuts will depend on other taxes, exchange rates, import costs and market margins.
Under the revised structure, phones valued up to $30 will now face a duty of Rs240, down from Rs300. For handsets priced between $30 and $100, the levy has been reduced to Rs2,400 from Rs3,000.
Similarly, the duty on phones valued between $100 and $200 has fallen to Rs6,000 from Rs7,500. For phones priced between $200 and $350, it has been cut to Rs8,800 from Rs11,000.
Meanwhile, the duty on phones in the $350-$500 range has been reduced to Rs12,000 from Rs15,000. For phones priced above $500, the government has set the levy at Rs17,600, representing a reduction of Rs4,400 per handset.
The government has also reduced additional customs duty on certain mobile phones to 4% from 6%. In addition, it has cut regulatory duty on mobile phones imported in completely knocked down (CKD) and semi-knocked down (SKD) form to 4% from 5%.
Will mobile phones become cheaper?
The duty reduction raises questions about whether consumers will see lower prices in the retail market.
While the government has reduced the regulatory duty on phones costing more than $500 by Rs4,400 per handset, the final retail price depends on several other factors.
Importers also account for customs duties, other taxes, the exchange rate, shipping and import costs, as well as their own margins and those of retailers.
Therefore, a reduction in regulatory duty does not necessarily translate into an equivalent reduction in retail prices.
Mobile phone industry expert Khurram Abbas said the duty cut could provide some relief to consumers, but the actual benefit would depend on how much of the reduction importers and retailers pass on to buyers.
He said other taxes, fluctuations in the dollar exchange rate, import expenses and market margins could influence the final price of imported handsets.
In other words, the Rs4,400 reduction in regulatory duty on phones above $500 does not automatically mean consumers will receive the full amount as a price cut.
Mobile phone imports already rising
The government announced the duty reductions as mobile phone imports were already increasing in Pakistan.
During the 2025-26 financial year, imports of smartphones and cellular phones reached about $1.888 billion, compared with approximately $1.497 billion a year earlier, according to the figures provided.
That represents an increase of about $391 million in one year.
Imports of completely built-up (CBU) mobile phones also increased significantly. Their import value rose to $357.7 million during the 2025-26 financial year.
Impact on local mobile manufacturing
The revised tariff policy also has implications for Pakistan’s domestic mobile phone assembly and manufacturing industry.
Pakistan’s Mobile Device Manufacturing Policy 2020-25 has completed its term, while a new mobile device manufacturing policy is awaiting approval from the federal government.
The lower duty on imported handsets could give consumers greater access to international models and more choice in the market. At the same time, however, cheaper fully built-up phones could increase competitive pressure on local assemblers and manufacturers.
The impact will therefore depend not only on the revised duty structure but also on how importers adjust retail prices and how the government structures its upcoming policy for local mobile device manufacturing.
