In a remarkable industrial transformation, Pakistan has shifted from being a net importer of mobile phones to a country that locally assembles over 95% of its domestic demand. This dramatic change, achieved in just a few years, is a direct result of a strategic government policy that successfully curtailed smuggling and incentivized local production, turning the nation into a burgeoning hub for mobile manufacturing.
At the heart of this success story are two interconnected initiatives: the implementation of a robust device-blocking system and a forward-thinking manufacturing policy that attracted global brands to set up shop in the country.
The Game Changer: DIRBS and the 2020 Manufacturing Policy
For years, Pakistan’s mobile market was plagued by a massive grey market. Smuggled and counterfeit devices flooded the country, resulting in significant losses in tax revenue, unfair competition for legal businesses, and security risks from untraceable phones.
The first critical step in addressing this was the full implementation of the Device Identification, Registration, and Blocking System (DIRBS) by the Pakistan Telecommunication Authority (PTA). This system made it impossible to use smuggled, non-tax-paid phones on local mobile networks. By rendering grey-market devices useless, DIRBS effectively leveled the playing field and created a transparent, regulated market.
Building on this foundation, the government introduced the Mobile Device Manufacturing Policy in 2020. The policy offered powerful incentives, most notably a significant tariff differential that made it far more cost-effective for companies to import mobile phone components for local assembly rather than importing fully built-up (CBU) units.
Read more: Pakistan Local Mobile Manufacturing Reaches 95% Market Dominance in 2026
From Policy to Production: A Manufacturing Boom
The response from the industry was immediate and overwhelming. Since the policy’s introduction, over 30 companies have established local assembly plants across Pakistan. This includes facilities for some of the world’s biggest smartphone brands, such as Samsung, Xiaomi, Vivo, Oppo, and Infinix.
The production numbers illustrate the policy’s staggering success:
- In 2023, local plants produced 21.28 million mobile phones, while commercial imports stood at just 1.58 million.
- The momentum continued into 2024, with 13.08 million units manufactured locally in the first five months alone, against only 0.75 million imports.
This surge means that locally assembled phones now satisfy over 95% of Pakistan’s market demand, a complete reversal from just a few years prior when imports dominated.
The Economic and Consumer Impact
The shift to local assembly has delivered substantial economic benefits. The policy has been credited with creating over 60,000 jobs, saving valuable foreign exchange by reducing the import bill, and dramatically increasing tax collection through formal channels.
For consumers, the policy has led to greater availability of officially warranted smartphones at more accessible price points. While the “PTA Tax”—a duty required to register personally imported phones—remains a significant deterrent for informal imports, it serves the policy’s goal of channeling demand toward the growing “Made in Pakistan” sector.
The Next Frontier: Deeper Localization and Exports
With the initial goal of import substitution largely achieved, Pakistan is now setting its sights on the next phase of industrial growth. The government has drafted a new, more ambitious Mobile and Electronic Devices Manufacturing Policy for 2026-2033.
This new framework aims to move the industry beyond basic assembly. It focuses on encouraging “deeper localization”—the domestic manufacturing of key components like motherboards, PCBs, and casings. The ultimate ambition is to transform Pakistan from a local assembler into a regional exporter of mobile devices.
The journey from a consumption-based market to a production hub marks one of Pakistan’s most significant recent industrial successes. By effectively leveraging policy, the nation has not only built a new industry from the ground up but has also laid the groundwork for a more technologically self-reliant and export-oriented future.