Pakistan Cuts Import Duty on Mobile Phones by 20%

The federal government has approved a 20 percent cut in regulatory duty on imported mobile phones, a move expected to bring visible price relief for consumers from July 1, 2026. The decision was reported on Tuesday after deliberations linked to the Finance Bill and is being viewed as a major development for Pakistan’s smartphone market.

The reduction is expected to particularly affect imported and higher-end devices, where taxes and duties have kept retail prices sharply above international levels. Market estimates suggest that prices of some expensive imported phones could fall by around Rs10,000 to Rs14,000 once the new duty structure takes effect.

Federal Board of Revenue Chairman Rashid Mahmood Langrial briefed the National Assembly Standing Committee on Finance about the measure. He said the 20 percent reduction in regulatory duty would be implemented from the start of the new fiscal year and would directly influence the landed cost of imported mobile devices.

Officials also indicated that the existing tax framework on imported phones was designed to protect revenue while allowing targeted relief. The FBR chairman cautioned that broad-based concessions for premium devices could mainly benefit wealthier buyers and create unnecessary pressure on government collections if not managed carefully.

National Assembly member Qasim Gilani welcomed the development as a step toward making smartphones more accessible. He argued that mobile phones should increasingly be treated as a basic tool for education, business, digital payments and communication rather than merely as a luxury purchase.

Imported phones in Pakistan face several layers of taxation, including sales tax, regulatory duty, mobile device levy and withholding tax. These charges have long been criticised by consumers and technology retailers because they can significantly raise the final price paid by buyers seeking legally imported and PTA-compliant devices.

Before the latest amendments, lawmakers had raised concerns that the total tax burden on some devices could become extremely high, especially for mid-range and premium models. The issue gained further attention as smartphones became essential for online learning, small business management, freelancing, ride-hailing, banking and government digital services.

The decision is also important for Pakistan’s formal technology market. Lower duties may encourage more consumers to buy through legal channels, reduce incentives for grey-market imports and improve documentation in the mobile phone trade. Retailers are likely to watch closely how quickly importers pass the reduction on to customers.

The concession is expected to carry a revenue impact of around Rs1 billion, but supporters argue that increased legal imports and higher device registration could help offset part of the loss. Mid-range phones priced between $200 and $300 may also benefit from additional amendments approved during budget discussions.

For consumers, the immediate question is whether prices will actually fall after July 1 or whether retailers will delay adjustments until fresh stock arrives. The next few weeks will show how the FBR, importers and mobile phone sellers implement the revised duty structure and whether the relief reaches ordinary buyers across Pakistan.