The government of Pakistan has announced a reduction in the price of imported mobile phones by Rs14,000.
According to the budget 2026-27, passed recently on June 12, the Federal Board of Revenue (FBR) has reduced the regulatory duty on imported phones by 20 per cent.
The FBR chairperson, Rashid Mahmood Langrial, while briefing the National Assembly (NA) Standing Committee on Finance, said that the 20 per cent reduction in regulatory duty on high-end imported phones will take effect from July 1, 2026.
He said that this step will provide relief of Rs14,000 per phone. He said this relief is part of the overall duty reductions under the tariff rationalisation policy.
During discussions on the Finance Bill 2026, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial said there was no justification for restructuring the existing tax bands on imported mobiles, describing the current framework as “progressive, equitable and revenue-buoyant”.
He opposed broad reductions in import duties, particularly on high-end devices, saying premium smartphones account for a significant share of import-related tax revenue and are largely purchased by wealthier consumers.
According to the FBR chairman, lowering duties on imported mobile phones would primarily benefit the rich buyers while resulting in substantial revenue losses for the government.
However, he suggested that if any tax relief is considered, it should be limited to lower-cost imported phones priced between $31 and $200. He said such a measure would benefit first-time and price-sensitive buyers while having only a limited impact on government revenues.
Rashid Langrial also highlighted the importance of Pakistan’s domestic mobile phone assembly sector, noting that around 95% of phones used in the country are assembled locally, while only 5% are imported.
He said the local assembly industry remains the key factor behind affordable smartphone access and recommended preserving concessions available under the Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) regimes to support lower prices in the mass market.
The recommendations come as imports of mobile phones continue to rise sharply.
According to the latest figures, Pakistan imported 1.04 million mobile phones during the year, up 61% from 640,000 units a year earlier.
The value of those imports increased by 137%, while duty and tax collection from imported mobile phones rose by 136% to Rs36.9 billion, reflecting both higher import volumes and stronger revenue generation from the sector.
The government’s final decisions on mobile phone taxation will be closely watched by consumers, importers and local manufacturers as the Finance Bill 2026 moves through the legislative process.
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