The federal authorities plans to impose a ban on the import of used cellphones beneath the brand new Cell and Digital Units Manufacturing Coverage 2026-33, unveiled by the Ministry of Industries and Manufacturing on Monday.
The coverage has been ready by the Engineering Improvement Board (EDB) in collaboration with native cell phone producers. It goals to draw world manufacturers and promote export-led development by native manufacturing, following fashions adopted by nations comparable to India, Vietnam, and Bangladesh.
The coverage was introduced throughout a high-level assembly chaired by Particular Assistant to the Prime Minister (SAPM) on Industries and Manufacturing, Haroon Akhtar Khan, to evaluate progress and align stakeholders on its aims and implementation framework.
An in depth presentation was given on the coverage, together with an evaluation evaluating the advantages of native meeting with full imports. Addressing the assembly, Haroon Akhtar Khan said that the first goal of the coverage is to generate native employment and bolster Pakistan’s industrial base.
Below the coverage framework, obligatory export targets have been termed counterproductive, citing the auto sector for instance. Whereas high quality certification is obligatory for exports, it shouldn’t be enforced coercively. The coverage additionally requires the institution of government-run native testing laboratories.
The coverage proposes penalties linked to efficiency targets and directs EDB to outline minimal element necessities for meeting. Smartphones would require 40 components per SKD package, whereas characteristic telephones would require 15 components per SKD package. Valuation rulings are to be institutionalised with participation from EDB, PMPMA, and the Customs valuation directorate.
To forestall under-invoicing, each fully constructed items (CBUs) and domestically manufactured cellphones are really helpful to be positioned beneath the Third Schedule of gross sales tax. Export targets are proposed to be immediately linked with Tax Increment Financing (TIF) implementation.
The coverage units a minimal 30 p.c tariff hole between CBU and SKD imports and proposes that the Tax Increment Financing levy might apply to each CBU and SKD imports. It additionally notes that e-waste administration stays a posh problem requiring cautious dealing with.
Haroon Akhtar Khan stated the coverage will undertake phased localization to encourage international funding in high-tech manufacturing and guarantee sustainable industrial development. Particular emphasis shall be positioned on the native manufacturing of key elements, together with motherboards, PCBs, digital components, and show elements.
He reiterated that Prime Minister Shehbaz Sharif goals to remodel Pakistan into an export base for world manufacturers and combine the nation into world worth chains. Cell producers knowledgeable the assembly that main worldwide manufacturers, together with Samsung, Xiaomi, Oppo, Vivo, Nokia, and others, are potential traders beneath the brand new coverage framework.
The assembly additionally highlighted that development within the cell sector will positively influence different digital industries and help broader industrial growth. Haroon Akhtar Khan stated the coverage will introduce an export-oriented and globally aggressive industrial framework aligned with worldwide requirements.
Strict compliance mechanisms shall be enforced beneath the coverage. Incentives shall be withdrawn, and penalties imposed in circumstances of violations associated to localization targets, reporting necessities, or operational obligations. In circumstances of non-compliance, suspension of import licences and monetary penalties may additionally be utilized.
Cell producers pressured the necessity for high quality certification for exports and really helpful the institution of native testing and certification laboratories to fulfill worldwide requirements.
Haroon Akhtar Khan directed each private and non-private sector stakeholders to work intently to make sure the efficient implementation of the coverage and obtain Pakistan’s targets of export-led development and industrial transformation.
The assembly was attended by Secretary Industries and Manufacturing Saif Anjum, EDB CEO Hammad Mansoor, and representatives of the Pakistan Cell Telephone Producers Affiliation (PMPMA).