Customs Rejects Claims of Surge in Finished Mobile Phone Imports

Pakistan Customs has clarified recent media reports on mobile phone imports, saying they overstated the scale of finished handset imports by treating the total value of mobile phone imports as completed devices instead of distinguishing between phones assembled locally and those imported ready for sale.

According to Customs, Pakistan imported around 32 million mobile phones during FY2025-26, compared with about 33 million in the previous fiscal year, indicating that overall import volumes remained largely stable. The total value of mobile phone imports increased to approximately Rs. 520 billion from Rs. 427 billion a year earlier.

However, Customs said nearly Rs. 420 billion, or around four-fifths of the total import value, consisted of Completely Knocked Down (CKD) and Semi Knocked Down (SKD) kits imported by registered manufacturers for local assembly. Only about Rs. 100 billion represented Completely Built Unit (CBU) mobile phones imported in finished form.

The authority noted that imports of finished smartphones increased from around 0.29 million units in FY2024-25 to approximately 1.04 million units in FY2025-26. Industry feedback suggests that 60 to 70 percent of this increase comprised new and used Apple iPhones and Google Pixel devices, neither of which is manufactured locally. Customs said the rise reflected consumer demand for brands unavailable through domestic assembly rather than a shift away from Pakistan’s local manufacturing policy.

Pakistan Customs also said official commercial imports have become more attractive due to lower tax costs. Commercially imported iPhones are subject to duties and taxes of about Rs. 150,000, compared with around Rs. 190,000 for devices registered against a passport and roughly Rs. 210,000 for those registered through a CNIC.

According to the authority, total duties and taxes collected on mobile phone imports rose to approximately Rs. 121 billion in FY2025-26 from Rs. 89 billion a year earlier, an increase of more than 36 percent. Customs attributed the higher revenue and greater share of documented imports to stronger anti-smuggling enforcement, improved customs clearance procedures, and closer coordination with the Pakistan Telecommunication Authority (PTA) on device registration.