Pakistan’s local mobile and laptop industry is looking to the federal budget for crucial policy support and tax relief aimed at boosting domestic manufacturing and exports.
Currently, no new taxes have been applied, but a 25% sales tax exists on imported phones over $500, with an 18% rate on models below that price, as well as on locally assembled kits. While manufacturers want to keep these import taxes to protect their businesses, they are also calling for the reversal of an 18% sales tax on their own locally produced phones, arguing it harms affordability.
Industry leaders are urging the government to create a dedicated Export Development Fund, similar to those in competing nations, to unlock the sector’s massive export potential. They believe that with the right support, local manufacturing could significantly reduce Pakistan’s trade deficit.
The laptop sector also requires attention, as the lack of a supportive policy makes locally assembled laptops more expensive than imported ones. The industry is calling for a dedicated framework to encourage local production.
In short, the tech industry is asking the government for a strategic partnership to protect local manufacturing, boost exports, and make technology more accessible for everyone. The upcoming budget will reveal if these calls have been heard.
