Pakistan Customs Rejects Claims of Surge in Finished Phone Imports
ISLAMABAD: Pakistan Customs has issued a detailed clarification over reports about mobile phone imports, saying the figures being circulated gave an incomplete picture of the market by mixing locally assembled device kits with fully imported handsets. The clarification came on July 21 as mobile phone import numbers became a fresh topic of public debate among consumers, traders and technology-sector observers.
The authority said Pakistan imported around 32 million mobile phones during fiscal year 2025–26, compared with nearly 33 million units in the previous fiscal year. Customs argued that this showed overall import volumes remained broadly stable, rather than indicating a dramatic shift away from domestic assembly or a sudden flood of finished imported devices.
According to the clarification, the total value of mobile phone imports rose to about Rs520 billion in FY2025–26 from Rs427 billion a year earlier. However, Customs said nearly Rs420 billion of the total was linked to Completely Knocked Down and Semi Knocked Down kits brought in by registered manufacturers for local assembly, not finished phones ready for retail sale.
Officials said only around Rs100 billion of the import value represented Completely Built Unit devices. On that basis, Customs maintained that treating the entire Rs520 billion figure as finished-phone imports created a misleading impression about Pakistan’s dependence on foreign-manufactured handsets and ignored the role of local assembly plants.
The statement also addressed the rise in officially imported premium smartphones. Customs data showed that finished smartphone imports increased from about 0.29 million units in FY2024–25 to nearly 1.04 million units in FY2025–26. Industry feedback cited by the authority suggested that a major share of this increase came from Apple iPhones and Google Pixel devices, brands that are not manufactured in Pakistan.
Customs said the rise in documented imports should not be viewed only as a challenge to local manufacturing. It argued that higher official imports of high-end devices reflected consumer demand for models unavailable through domestic assembly, while also moving part of the market away from informal or grey channels toward tax-paid commercial routes.
The authority further noted that commercially imported iPhones carry lower duties and taxes than devices registered by individual travellers. It said the duty and tax burden through commercial import channels is around Rs150,000, compared with roughly Rs190,000 for passport-based registration and about Rs210,000 for CNIC-based registration.
Government revenue was also highlighted in the clarification. Customs said duties and taxes collected on mobile phone imports rose to approximately Rs121 billion in FY2025–26, compared with nearly Rs89 billion in FY2024–25. Officials presented the increase as evidence of stronger enforcement, better documentation and improved coordination with the Pakistan Telecommunication Authority.
The background to the issue lies in Pakistan’s long-running effort to reduce mobile phone smuggling, regulate device registration and support domestic assembly. Systems such as device identification and registration requirements have pushed many users and traders into formal channels, but debates continue over taxes, affordability and the availability of premium models.
For Pakistan, the clarification has significance beyond the telecom market. Mobile phone imports affect tax collection, local manufacturing confidence, consumer pricing, foreign exchange use and the government’s wider digital economy agenda. If official channels continue to expand, authorities may gain revenue and market transparency, but consumers will still expect a fair tax structure and wider access to affordable devices.
The next step will depend on how policymakers balance local assembly incentives with demand for imported premium phones. Customs, PTA and industry stakeholders are likely to face continued pressure to publish clearer data, reduce confusion in public reporting and ensure that enforcement supports both legitimate trade and Pakistan’s domestic technology ecosystem.