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By Sabeeh Zanair :
With Pakistan’s 5G spectrum auction set for 10 March, the Ministry of Industries and Production has moved to align device manufacturing with the upcoming rollout of next-generation telecom services. Officials say advanced, 5G-compatible smartphones will be introduced alongside network upgrades as operators prepare to expand coverage nationwide.
The government has finalised the Mobile and Electronic Devices Manufacturing Policy 2026–33, a long-term framework aimed at strengthening local production and boosting exports. The policy was approved at a high-level meeting chaired by Special Assistant to the Prime Minister Haroon Akhtar Khan and will now be forwarded to the prime minister for final approval.
Industry Prepares for 5G Shift
Telecom operators are expected to require five to six months after acquiring spectrum to deploy 5G infrastructure in major urban centres, while expanding 4G services to additional cities and towns.
Industry representatives have welcomed the timing of the policy.
“The new framework comes at a crucial moment,” said Amir Allawala of the Pakistan Mobile Phone Manufacturers Association. “As telecom companies prepare to introduce 5G services, manufacturers will also need time to transition production lines towards 5G-enabled smartphones.”
Several companies currently producing feature phones have already begun shifting toward smartphone assembly, anticipating rising consumer demand.
Key Policy Incentives
The policy introduces:
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8% export incentives on mobile phone exports
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Reduced customs duties on imported components and parts
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Higher duties on fully built units (CBUs) and imported accessories such as chargers and hands-free devices
Officials say the aim is to encourage local value addition while discouraging finished imports.
Production and Market Outlook
Pakistan currently has 37 licensed mobile phone manufacturers, producing approximately 40 million units annually. In 2025, about 30.2 million mobile phones were assembled locally, with nearly 40% comprising feature phones.
Domestic demand is projected to reach up to 40 million units per year, highlighting the need for export-driven growth to sustain expansion.
The policy also recommends establishing a dedicated Mobile & Electronics Devices Cell within the Engineering Development Board (EDB) to oversee implementation and industry coordination.
Economic Impact
Officials believe the new manufacturing framework will not only support the telecom sector but also strengthen Pakistan’s broader electronics industry, positioning it as a growing contributor to industrial output and exports.
As the 5G auction approaches, the combined push for improved connectivity and local device manufacturing signals a significant step in Pakistan’s digital and industrial transformation agenda.
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