Rising import taxes have kept the price of smartphones out of reach for many Pakistani households, especially as the market leans heavily on foreign‑made devices. Now, a government‑led tariff overhaul promises to ease that burden.
Effective 1 July 2026, the Federal Board of Revenue (FBR) will lower the regulatory duty (RD) on imported mobile phones by 20 percent, aligning the change with the FY 2026‑27 tariff reform plan announced earlier this year. The revised RD schedule, unveiled on 10 September 2026, replaces the previous rates that were applied to all handset categories—ranging from entry‑level to flagship models—under the national tariff framework.
The cut translates into a tangible price drop for consumers: a phone that previously attracted a 30 percent duty will now face a 24 percent levy, while a high‑end device taxed at 40 percent will see its duty reduced to 32 percent. By trimming the cost component added at customs, the FBR aims to make smartphones more affordable without compromising fiscal targets, as the duty reduction is balanced by adjustments elsewhere in the tax structure.
Industry observers expect the move to revive demand for mid‑range and premium smartphones, sectors that have seen sluggish growth amid tightening budgets. Retailers in major electronics hubs such as Saddar, Blue Area and Gulshan‑e‑Iqbal anticipate higher foot traffic and faster inventory turnover, while online platforms are gearing up for a surge in orders once the new rates take effect.
Analysts also note that a more price‑competitive market could stimulate ancillary sectors, including local repair services, app development and mobile‑first e‑commerce. However, they caution that the revenue shortfall from lower duties will need to be offset by broader tax reforms, and that the government must monitor import volumes to ensure the policy does not inadvertently discourage domestic assembly initiatives.