Pakistan aims for 50% local value addition in mobile phone making

Pakistan is targeting up to 50 percent domestic value addition in mobile device manufacturing under a new policy the government is preparing, according to an official document cited by Business Recorder and TechJuice. The aim is to move the industry away from import-dependent assembly towards local component manufacturing.

The Ministry of Industries and Production is working on the new Mobile Device Manufacturing Policy. It would build on the Mobile Device Manufacturing Policy 2020–2023, which attracted domestic and foreign investment into assembly facilities. The new policy is to focus on local component production, technology transfer and the development of a supporting industrial ecosystem.

Domestic value addition in the sector is currently around 10% to 20%, the reports said. The ministry aims to reach up to 50% over time.

Production figures show the scale of local assembly. Between January and September 2026, Pakistan produced 20.08 million handsets locally, while commercial imports of handsets were 2.85 million units. The locally assembled devices included roughly eight million smartphones and 12 million 2G phones. Data from the Pakistan Telecommunication Authority shows smartphones account for 71% of active mobile devices on local networks.

Import spending has fallen. In the first quarter of fiscal year 2026-27, the mobile phone import bill dropped 16.6% in dollar terms to $417.24 million, from about $500.01 million a year earlier. In September 2026, imports rose 7.1% from August to $143.14 million, from $133.66 million, but were 28.2% lower than in September 2025.

VGO TEL was the largest local handset producer in the first nine months of 2026, overtaking Infinix and Itel. Infinix produced 3.98 million units locally in 2024 and 3.65 million in 2025. The reports say output is spreading across various manufacturers rather than concentrating in one brand.

The reports say the policy's success depends on building a competitive local component supply chain, keeping prices competitive, and securing access to the components that must still be imported.