Expects exports of 22m units over 7 years, plans shift to full-scale manufacturing
ISLAMABAD:
Pakistan has set mobile and IT equipment export target at $2.5 billion by switching from gadget assembly to manufacturing by 2033 under the new device and electronics manufacturing policy.
To meet the goal, the government expects export of 21.6 million mobile phones and development of a workforce of 75,000 skilled workers over the next seven years to support full-scale manufacturing.
According to official projections, exports will start rising sharply after 2027, when 0.16 million mobile units are expected to be shipped overseas, which will jump to 1.82 million units in 2028. Exports will soar to 5.25 million units by 2033.
The government has estimated export proceeds of $612.69 million in 2033 while total exports will jump to $2,528 million over seven years.
In this era of fast-paced innovation, increasing attention is being paid to a structural shift in Pakistan’s electronics ecosystem. The Shehbaz Sharif-led government wants exports to become the main growth engine for the mobile device industry. There will be deep focus on research and development as well as the circular economy, which includes formal e-waste recycling targets.
The plan envisages human capital development as a central pillar of the policy, which targets a 75,000-strong skilled workforce by 2033. Officials are of the view that skilled labour will also help attract global brands and deepen local supply chains.
International engagement also forms a key part of the new device and electronics manufacturing policy as the government plans to participate in 26 global exhibitions and events over the seven-year period. Pakistan will also market its products in emerging economies to secure export contracts.
Value addition is another benchmark as the policy envisions cumulative domestic value addition of 50% by 2033. Interim milestones are 5.3% for 2027 and 23.5% for 2030. Industry experts say higher value addition will lessen reliance on imported components, easing pressure on the country’s foreign exchange reserves. Additionally, there are plans to invest significantly in component manufacturing with focus on establishing 10 model surface-mounted technology and component plants by 2033. These facilities are likely to supply printed circuit board assembly and other critical inputs to local manufacturers.
Formal e-waste recycling is targeted to reach 70% by 2033 after initially touching 10% in 2027. This is aimed at aligning with global sustainability standards with the objective of reducing environmental risks linked to discarded electronics.
Localisation deadlines
The policy outlines phased localisation of mobile phone parts along with enforcement measures because incentives will be withdrawn if the manufacturers fail to meet the deadline.
According to the localisation schedule, a deadline of July 1, 2026 has been set to localise packing materials including boxes, stickers and booklets. Manufacturers will be bound to localise chargers, USB cables and hands-free devices within six months of policy implementation.
They will have to localise displays for feature phones within 18 months and will be required to localise batteries used in mobile phones and plastic parts or components in 24 months.
Displays for smartphones have the longest compliance window as manufacturers will be needed to localise within 30 months under the rollout plan. The government will be empowered to immediately withdraw incentives for parts that are not localised as per the approved schedule. Of these, the manufacturers will be deprived of duty concessions over failure to meet the required timelines.
