ISLAMABAD: Mobile phone prices in Pakistan could see a reduction in the upcoming federal budget if proposed changes to import taxes are approved, according to reports ahead of the fiscal plan for 2026–27.
The federal budget, which is anticipated to be presented on June 5 after negotiations between the government and the IMF, will include a reduction in mobile phone taxes from 25% to 18%.
It is understood that officials will consider retaining the same Pakistan Telecommunication Authority (PTA) taxation for premium imported mobile phones. However, there is also the possibility that the tax will be reduced to 18%, meaning that smartphones will become cheaper.
In particular, a tax reduction might be most beneficial for imported smartphones that cost more than $500, like Apple’s and Samsung’s flagship products.
Although the decrease in tax rate can prove helpful for consumers, smartphone producers in Pakistan are unlikely to welcome such measures because they are likely to intensify competition due to imported products.
According to the PTA, mobile phones that enter the country illegally are subject to restrictions. Only those smartphones will have all necessary functions unlocked if applicable import duties are paid.
If no reduction in import taxes is announced, smartphone prices especially flagship models are expected to remain high, continuing the affordability challenge for many consumers in the local market.
The final decision is expected when the federal budget is unveiled next week.
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