According to sources, the reduction could decrease the retail price of imported mobile phones by approximately PKR 10,000 to PKR 14,000 per device, providing direct financial relief to consumers. Market stakeholders say the lower regulatory duty will reduce import costs, which is expected to translate into lower market prices for consumers.

While briefing the National Assembly s Standing Committee on Finance, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial said that the 20% reduction in regulatory duty on imported mobile phones will take effect from July 1, 2026.

He stated that the measure could reduce the price of expensive imported mobile phones by up to PKR 14,000 per device.

Presenting recommendations regarding the Finance Bill 2026, the FBR chairman said the existing tax structure on imported mobile phones is balanced, fair, and effective in generating government revenue, and therefore does not require further changes.

He emphasized that any large-scale reduction in duties on premium imported smartphones would primarily benefit wealthier consumers while causing significant losses to the national exchequer.

According to Langrial, if additional relief is considered, it should be limited to entry-level smartphones valued between $31 and $200, allowing low-income consumers and first-time smartphone buyers to benefit.

According to the Saudi newspaper Arab News, Member of the National Assembly Qasim Gillani welcomed the development, describing it as a step in the right direction, even if it does not fully meet expectations.

In a post on social media platform X, Gillani announced the reduction in regulatory duty on mobile phones, saying the measure would improve connectivity and expand public access to technology.

Imported mobile phones in Pakistan are currently subject to several taxes and duties, including General Sales Tax (GST), Regulatory Duty, Mobile Device Levy, and Withholding Tax. These charges significantly increase the prices of legally imported devices.

Gillani said that before the amendments, the total tax burden on a mobile phone could reach approximately 63% of its base price. For example, a phone priced at PKR 200,000 could attract taxes of around PKR 106,000.

He added that in March, the Parliamentary Finance Committee had recommended treating mobile phones as a basic necessity rather than a luxury item, given their essential role in education, business, and everyday communication.

When these recommendations were not incorporated into the budget presented earlier this month, lawmakers challenged the 25% luxury GST and other import-related barriers through amendments to the Finance Bill. Following extensive discussions, the FBR accepted several proposals.

According to Gillani, the government has agreed to reduce the regulatory duty on all imported smartphones by 20%, easing the overall tax burden across different price categories.

In addition, the FBR has approved a separate amendment for mid-range smartphones. The concession will apply specifically to devices priced between $200 and $300, a category that includes some of the best-selling smartphones in Pakistan. Officials estimate that this relief could reduce government revenue by approximately PKR 1 billion.

However, smartphones priced above $500 will remain subject to the 25% luxury GST and will only benefit from the 20% reduction in regulatory duty.