KARACHI: Cell phone manufacturing firms in Pakistan rolled out 7.6 million handsets in the first five months of the year, the country’s telecom authority has said, with top officials in manufacturing companies saying they were ready to export smartphones in the next six months.
Once the world’s seventh largest importer of mobile phones, Pakistan made local assembling of cellphones possible by implementing the Device Identification, Registration and Blocking System (DIRBS) in 2018. The system not only controlled the smuggling of mobile phones but also led to the local manufacturing of these gadgets.
According to statistics compiled by the Pakistan Telecommunications Authority (PTA), local manufacturing in 2020 stood at 12.6 million phones, including 10.42 million 2G devices and 2.22 million 3G and 4G sets.
“In the current year, about 5.34 million 2G and 2.23 million 3G/4G devices have been locally manufactured,” PTA, which keeps a record of cell phones produced in the country, said in response to an Arab News query.
“In accordance with the Mobile Device Manufacturing Regulations issued by the PTA on 28th January 2021, a total of 19 companies who applied to the PTA for setting up mobile device manufacturing plants have been approved. A 10-year Mobile Device Manufacturing (MDM) Authorization has been granted by the PTA to these companies,” the telecom regulator added.
PTA said Pakistan’s total annual market size was estimated at 34 million handsets, adding that these included 20 million 2G and 14 million 3G/4G devices.
Pakistan has 85 percent tele-density with 183 million cellular subscribers. The country also has 98 million 3G/4G and 101 million broadband subscribers.
To meet the growing market demand, 19 companies, mostly from China, have started operating in Pakistan. Other market players include Nokia, which is setting up its manufacturing unit in the country in collaboration with a local company.
“The MDM regulations allow both foreign companies as well as joint ventures between local and foreign companies to apply for manufacturing authorization,” the PTA said, adding: “The companies who have been issued authorization include both standalone foreign entities and joint venture companies who have partnered with a foreign brand to set up mobile manufacturing plants in Pakistan.”
The prominent brands, according to the Pakistani telecom regulator, include Oppo, Realme, Vivo, Alcatel, Infinix, Techno and Nokia etc.
After the implementation of DIRBS, many foreign cell phone manufacturers felt the need for local production, say industrial players.
“It is a matter of survival,” Aamir Allawala, CEO of Tecno Pack Telecom, told Arab News. “In the coming days, all brands will have to ensure manufacturing in Pakistan. If anyone fails to do that, it will not be able to survive in the local market.”
Manufacturers say they are meeting about 60 percent demand of mobile phones through local production which is likely to increase to 70 percent by August this year.
The companies are also optimistic to start exporting smartphones within a span of six months.
“The government had announced a three percent export rebate in its policy, but it has still not been implemented,” Allawala said, adding: “We expect that this will be implemented in the upcoming budget since export will become viable once the rebate is introduced.”
“With requisite incentives, Pakistan will start exporting mobile phones within six months,” he said. “We have a labor cost advantage since assembling rate is significantly lower in Pakistan. In China, for instance, the labor cost stands at $700 while in Pakistan it is around $125.”
The Mobile Device Manufacturing Policy 2020 also predicts that in the next two to three years, local production can reach up to 80 percent of Pakistan’s total handset market demand if attractive tariff plans are offered to the industry.
“This can result in the creation of at least 40,000 high-skill direct jobs in electronics and information technology industry and up to 300,000 indirect jobs in ancillary sectors,” the policy document reads. “A typical smartphone constitutes more than 60 parts, and its assembly requires manpower, where Pakistan can benefit from its low labor cost.”
Cellphone manufacturers in the local market say Pakistan has acquired the capability to produce all types of phones and is ready to manufacture 5G handsets when the network is rolled out by the end of the next year.
“The 5G network is not available in Pakistan at the moment, so manufacturing of 5G mobiles is out of the question for now,” Allawala said. “But when the network becomes available, the manufacturing will also start.”
Local traders say Pakistan’s domestic market was inundated with imported smartphones a few years ago, though they were now being replaced by locally assembled devices.
“A majority of phones in the market are now coming from local assembling plants,” Muhammad Rizwan Irfan, president of the Karachi Electronic Dealers’ Association, told Arab News, adding: “The quality of local mobile phones is gradually improving, but they still need to focus on after-sales service.”
According to dealers and manufacturers, the price gap between locally assembled and imported phones is somewhere between 12 and 13 percent.
Asked about the manufacturing prospects of iPhone, Samsung, Huawei and other major brands in Pakistan, the PTA responded by pointing at the country’s overall market potential.
“There is a huge appetite for the use of mobile devices locally and the government hopes it can be fulfilled through local manufacturing,” it said.
Pakistan eyes exports as local smartphone manufacturing touches 7.6 million units in 2021
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Pakistan eyes exports as local smartphone manufacturing touches 7.6 million units in 2021
- Pakistan’s telecom regulator says country manufactured 12.6 million smartphones last year though local production mainly focused on 2G handsets
- Manufacturers says Pakistan can export smartphones within six months if the promised export rebate is implemented
Pakistan secures $1 billion in ADB-backed financing from Middle Eastern banks
- The loan aims to strengthen the country’s fiscal resilience, support reform momentum
- The government says the deal signals renewed trust in Pakistan’s economic trajectory
KARACHI: Pakistan has signed a $1 billion syndicated term finance facility backed by Middle Eastern banks, marking its return to the region’s financial markets after more than two years, the finance ministry said on Wednesday.
The five-year facility is partially guaranteed by the Asian Development Bank (ADB) under its Policy-Based Guarantee program, which is linked to fiscal reforms undertaken by Pakistan to improve resource mobilization and economic stability.
The financing by the Middle Eastern banks is structured across Islamic and conventional tranches, with 89 percent of the total amount raised through a Shariah-compliant facility.
“This is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region,” the finance ministry said in a statement.
It informed that Dubai Islamic Bank acted as the sole Islamic global coordinator, while Standard Chartered Bank served as mandated lead arranger and bookrunner.
Other financiers include Abu Dhabi Islamic Bank as mandated lead arranger, and Sharjah Islamic Bank, Ajman Bank and Pakistan’s Habib Bank Limited (HBL) as arrangers.
The deal marks the first time a facility has been backed by an ADB Policy-Based Guarantee linked to specific reform measures undertaken by a member country.
According to the ministry, the ADB’s support helped Pakistan attract significant interest from regional lenders and re-enter global capital markets at a critical time for the economy.
The government said the success of the transaction signals renewed trust in Pakistan’s fiscal outlook and macroeconomic trajectory, marking the beginning of a new partnership with Middle Eastern banks.
Pakistan, which has faced persistent external financing gaps in recent years, has relied on friendly nations and global lenders to stabilize its balance of payments and rebuild investor confidence.
The ADB-backed facility is intended to help strengthen fiscal resilience while supporting economic reform momentum.
Pakistan reports first Congo virus death of 2025 in Karachi
- Virus is transmitted through tick bites or direct contact with blood of infected animals
- Pakistan’s southwestern province of Balochistan reported 23 Congo virus cases in 2024
KARACHI: A 42-year-old man lost his life after contracting the Crimean-Congo Hemorrhagic Fever (CCHF), marking the first confirmed fatality from the virus in Pakistan’s southern Sindh province this year, the health department said on Wednesday.
The fatality rate for the Congo virus ranges from 10 percent to 40 percent, depending on the quality of health care, timeliness of treatment and the patient’s overall health, according to the World Health Organization.
The virus, which is endemic in parts of Africa, Europe and Asia, is primarily transmitted through tick bites or contact with the blood or tissues of infected animals.
“First case of Congo virus [has been] reported in Sindh,” the Sindh Health Department said in a statement on Wednesday.
“42-year-old male was a resident of District Malir,” it continued. “The test report came out positive on June 16 and the patient passed away on June 17.”
Pakistan’s southwestern Balochistan province reported 23 Congo virus cases in 2024, with five deaths since January last year.
Local medical practitioners said most cases were diagnosed during the summer, when the likelihood of the virus spreading increases, particularly around the Eid Al-Adha festival.
The Islamic holiday, marked by the mass slaughter of animals, typically leads to greater human-animal interaction and exposure to infected livestock.
Pakistan witnessed its first case of Congo virus in 1976 and remained a major victim for years, according to the National Library of Medicine.
The country faces major challenges in combating Congo virus every year due to its specific geographical position and a majority of the population being involved with animal husbandry, it added.
There is no approved vaccine for its prevention.
The European Medicines Agency in May 2024 approved a Phase I clinical trial in Sweden for a DNA-based vaccine candidate, N-pVAX1, targeting the Congo virus.
Separately, the University of Oxford in August 2023 launched a Phase I trial of its ChAdOx2 CCHF vaccine, based on the Oxford/AstraZeneca Covid-19 platform, to assess safety and immune response.
Pakistan rescues injured Indian sailor amid post-war tensions with New Delhi
- Pakistan evacuates the injured sailor from a Liberian-flagged tanker with an all-Indian crew
- Rare humanitarian gesture follows recent Pakistan-India war amid strained diplomatic ties
ISLAMABAD: Pakistan on Wednesday evacuated an injured Indian sailor from an oil tanker in the Arabian Sea, in a rare humanitarian gesture weeks after the two countries fought a brief four-day war that further strained already tense relations.
The medical evacuation was coordinated by the Pakistan Navy’s Joint Maritime Information and Coordination Center (JMICC), which received a distress call from the Liberian-flagged oil and chemical tanker MT HIGH LEADER, carrying an all-Indian crew.
The Pakistan Maritime Security Agency (PMSA) deployed a vessel and transferred the injured crew member to a hospital in Karachi for emergency treatment.
“The successful medical evacuation is yet another testament to the operational readiness and responsiveness of Pakistan’s maritime safety apparatus,” the Pakistan Navy said in a statement.
“The swift execution reflects Pakistan Navy’s resolve to fulfill its international obligations for the safety of life at sea, irrespective of the nationality of the seafarers involved,” it added.
The incident comes at a time of high diplomatic friction between the two nuclear-armed neighbors.
Last month’s military confrontation, involving missile, drone and artillery exchanges, marked one of the most serious escalations in recent years.
Pakistan has repeatedly called for the revival of a composite dialogue process to resolve long-standing issues, including the Kashmir dispute, cross-border militancy and a water-sharing arrangement under the Indus Waters Treaty.
India, however, has resisted any engagement so far.
The JMICC, which coordinated the evacuation, serves as Pakistan’s central maritime emergency response hub and regularly liaises with both national and international stakeholders.
Pakistan reduces sales tax on imported solar panels from 18 % to 10 % amid parliamentary pushback
- The government proposed 18% GST on imported solar panels during budget 2025-26
- Pakistan imported 17 gigawatts of solar panels in 2024, twice the previous year’s volume
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar on Wednesday said the general sales tax (GST) on imported solar panels had been reduced from 18% to 10% for the current year, following concerns raised by a parliamentary finance body.
The Senate Standing Committee on Finance and Revenue had urged the government a day earlier to withdraw the proposed 18% GST on imported solar panels, noting that some stakeholders had begun stockpiling equipment ahead of the federal budget to avoid the new levy.
The country’s proposed federal budget for the 2025-26 fiscal year included an 18% GST on the import and local supply of solar panels and related equipment, prompting concern from industry stakeholders and clean energy advocates.
Pakistan imported 17 gigawatts (GW) of solar panels in 2024, twice the volume recorded the year before, to meet rising consumer demand, according to the Global Electricity Review 2025.
“The 18 percent on top of 46% was an additional burden,” Dar told the National Assembly.
“So, regarding this, after consultations and deliberations, we have decided that this year we will keep a 10% sales tax and not 18%.”
Dar highlighted how this was the most debated subject after the budget was announced.
He also explained that around 46% of components used in solar installations in Pakistan were imported while the remaining 54% including inverters and other equipment were locally sourced and already subject to standard taxation.
Solar energy has supplied 25% of Pakistan’s grid electricity so far this year, placing the country among fewer than 20 globally that generate at least a quarter of their monthly power from solar farms.
Industry stakeholders and clean energy activists had warned that the added cost in tax could slow the rapid adoption of rooftop solar systems by households and businesses, potentially undermining national targets for expanding the share of renewables in the country’s energy mix.
Pakistan increased its solar electricity generation at a rate more than three times the global average in 2025, driven by a surge in solar capacity imports that were over five times higher than in 2022, according to data from Ember, a UK-based energy think tank.
This rapid growth in both capacity and output has propelled solar energy from being the country’s fifth-largest power source in 2023 to the top spot in 2025.
Pakistan unveils draft tariff policy to drive export-led growth
- The policy plans to phase out Additional Customs Duties, rationalize the tariff structure
- It aims to reduce tariffs on raw materials, deliver $700 million in benefits to industries
ISLAMABAD: Pakistan on Wednesday unveiled a draft National Tariff Policy 2025-30 at a regulatory reforms conference, aiming to shift the country toward an export-led growth model by overhauling its trade tariff structure to boost industrial productivity, investment and competitiveness.
The event was organized by the Board of Investment (BoI), and attended by senior government officials, diplomats and private sector representatives.
The policy sets out sweeping reforms, including the phasing out of Additional Customs Duties (ACDs) within four years, elimination of Regulatory Duties (RDs) and the 5th Schedule within five years, and the creation of a simplified four-tier Customs Duty structure of 0 percent, 5 percent, 10 percent and 15 percent.
Key sectors expected to benefit include textiles, engineering, pharmaceuticals and information technology, with the policy designed to lower production costs and attract businesses.
“The National Tariff Policy 2025-30 is designed to create a predictable, transparent and investment-friendly tariff structure,” said Rana Ihsaan Afzal, Coordinator to the Prime Minister on Commerce, at the conference.
“By facilitating duty-free access to raw materials, phasing out ACDs and RDs and supporting nascent and green industries, this policy paves the way for innovation, employment generation and sustained economic growth.”
Afzal said implementation will begin with tariff reductions on approximately 7,000 tariff lines, mainly raw materials and intermediate goods, expected to deliver an estimated Rs200 billion ($700 million) in benefits to trade and industry.
“These reforms will enable Pakistan’s industries to scale, compete globally and shift toward higher value-added exports,” he added. “With these changes, we anticipate not just stronger GDP growth, but also increased employment, improved industrial productivity and enhanced investor confidence.”
According to an official statement issued by the BoI, the participants lauded the government’s efforts to streamline regulation and modernize trade facilitation, calling the draft policy a significant step toward Pakistan’s long-term economic transformation.
