Pakistan reduces regulatory and additional customs duties on imported mobile phones for FY2026-27, with premium smartphones receiving the largest cut.
Pakistan has reduced regulatory duty (RD) and additional customs duty (ACD) on imported mobile phones for fiscal year 2026-27, lowering the duty burden on premium smartphones and other cellular devices.
According to a brief issued by the Ministry of Commerce, the regulatory duty on completely built-up (CBU) smartphones priced above $500 has been reduced from Rs22,000 to Rs17,600 per handset.
The move represents a saving of Rs4,400 per phone, equivalent to a 20% reduction in the fixed regulatory duty for the highest-priced handset category.
Revised mobile phone regulatory duty rates
Under the revised tariff structure, ACD has been reduced from 6% to 4% across the listed smartphone and cellular-phone categories. Regulatory duty has also been lowered according to the value of imported handsets.
The revised RD slabs for CBU smartphones are:
• Up to $30: Rs240, down from Rs300
• $30-$100: Rs2,400, down from Rs3,000
• $100-$200: Rs6,000, down from Rs7,500
• $200-$350: Rs8,800, down from Rs11,000
• $350-$500: Rs12,000, down from Rs15,000
• Above $500: Rs17,600, down from Rs22,000
For smartphones and cellular phones imported in completely knocked-down (CKD) or semi-knocked-down (SKD) condition, regulatory duty has been reduced from 5% to 4%.
ACD on these categories has also been cut from 6% to 4%.
Duty cuts introduced under FY2026-27 Budget
The Ministry of Commerce said the tariff reductions were introduced under the FY2026-27 Budget as part of wider tariff rationalisation measures under the National Tariff Policy 2025-30.
The changes are aimed at streamlining the tariff structure while supporting the government’s broader objectives for the mobile-device sector.
Mobile phone imports surge
The duty reductions come after a significant increase in Pakistan’s mobile phone imports during FY2025-26.
According to the ministry, total imports of smartphones and cellular phones increased from $1.497 billion to $1.888 billion during the year.
Imports of CBU smartphones more than doubled to $357.7 million, indicating stronger demand for fully assembled handsets.
The rise in imports highlights growing demand for mobile devices in Pakistan, particularly for smartphones imported in finished form.
Mobile manufacturing policy expires
The ministry also noted that the Mobile Device Manufacturing Policy 2020-25 has expired, while a new policy has yet to receive approval from the federal government.
However, incentives previously available to mobile phone manufacturers and assemblers under the expired policy remain protected through the Fifth Schedule of the Customs Act, 1969.
This provides continued support for existing industry incentives while the government considers the framework for a new mobile-device manufacturing policy.
Premium smartphones could become more affordable
The latest tariff adjustments are expected to reduce the import duty burden on mobile handsets, with the most significant fixed-duty saving applying to smartphones priced above $500.
The reduction could make imported premium smartphones relatively more affordable, although the final retail price will also depend on other taxes, exchange-rate movements, import costs and market conditions.
At the same time, the government is continuing to support domestic mobile-device assembly and manufacturing through existing tariff incentives.
The latest measures therefore seek to balance lower import costs for consumers with continued policy support for the development of Pakistan’s local mobile-device industry.