Pakistan is working on a new Mobile Device Manufacturing Policy that aims to raise domestic value addition in mobile phones to as much as 50 per cent, shifting the industry from simple assembly to real local component manufacturing. The plan, reported on 30 October 2026, builds on the earlier Mobile Device Manufacturing Policy 2020–2023, which first attracted investment into assembly plants across the country.
From Assembly to Manufacturing
At present, domestic value addition in mobile device manufacturing is estimated at only 10 to 20 per cent. Most high-value parts, such as chips and displays, are still imported, even though the phones themselves are assembled locally.
The proposed policy aims to change that gradually. According to an official document cited in the reports, the Ministry of Industries and Production is formulating the new policy in coordination with the Engineering Development Board. A final round of stakeholder consultations is due before the policy goes to the federal cabinet and the prime minister for approval. The draft framework, called the Mobile and Electronic Device Manufacturing Policy (2026–33), sets out a phased seven-year path from assembly to manufacturing, with localisation reaching 50 per cent by 2033.
The policy also covers technology transfer, the development of local suppliers, and a supporting industrial ecosystem, so that local companies can make more parts at home instead of importing complete kits.
Local Plants Already Supply Most Phones
The policy push comes at a time when local assembly already carries most of the market. Between January and September 2026, local plants produced 20.08 million handsets, compared with just 2.85 million units imported commercially. Of the locally assembled phones, around 8 million were smartphones and 12 million were 2G phones.
PTA data shows that smartphones now account for 71 per cent of active mobile devices on local networks, while 2G phones make up the remaining 29 per cent. As a result, the import bill for finished phones has fallen: in the first quarter of fiscal year 2026–27, mobile phone imports dropped 16.6 per cent in dollar terms to $417.24 million, down from about $500.01 million a year earlier. September did see a monthly rise to $143.14 million from $133.66 million in August, but the figure was still 28.2 per cent below September 2025.
A New Leader in Local Production
The production rankings have also changed. VGO TEL emerged as the largest local producer in the first nine months of 2026, with 2.50 million handsets, overtaking Infinix (1.96 million) and Itel (1.59 million). TECNO followed with 1.16 million, then Samsung with 1.04 million, Vivo with 0.99 million and Nokia with 0.97 million. Other major producers included China Mobile (0.72 million), X Mobile (0.71 million) and G’FIVE (0.64 million).
This is a shift from previous years. Infinix led local assembly in 2024 with 3.98 million units and again in 2025 with 3.65 million, ahead of VGO TEL in both years. The 2026 figures cover January to September only, while the 2024 and 2025 figures are full-year totals, so the comparison is not like-for-like — but the direction is clear: output is spreading across more brands rather than being concentrated in one company.
| Brand | Handsets produced, Jan–Sep 2026 |
|---|---|
| VGO TEL | 2.50 million |
| Infinix | 1.96 million |
| Itel | 1.59 million |
| TECNO | 1.16 million |
| Samsung | 1.04 million |
| Vivo | 0.99 million |
| Nokia | 0.97 million |
| China Mobile | 0.72 million |
| X Mobile | 0.71 million |
| G’FIVE | 0.64 million |
What Will Decide Success
The reports are clear that the policy will only work if a competitive local component supply chain actually develops. Local assemblers must also keep prices competitive while dealing with exchange-rate pressure, consumer demand and continued dependence on some imported parts.
The government is pursuing the same approach in other engineering sectors, including automobiles and battery energy storage systems, as part of a wider push to reduce reliance on imported components and raise domestic value addition.
FAQs
What is the new mobile manufacturing policy?
A proposed Mobile Device Manufacturing Policy that aims to raise domestic value addition in mobile phones to up to 50 per cent, moving beyond assembly into local component production.
What is the current level of local value addition?
Around 10 to 20 per cent, according to the reports.
When could the 50 per cent target be reached?
The draft policy sets out a phased path to 50 per cent localisation by 2033, but it still needs stakeholder consultations and cabinet approval.
How many phones did local plants make in 2026 so far?
20.08 million handsets between January and September 2026, against 2.85 million commercially imported units.
Which brand produced the most phones locally in 2026?
VGO TEL, with 2.50 million handsets in the first nine months of 2026, ahead of Infinix and Itel.
Will this make phones cheaper?
Not necessarily on its own. The reports note that success depends on competitive local supply chains, stable exchange rates and assemblers keeping prices competitive. Local production can reduce import dependence, but cheaper phones are not guaranteed.
Conclusion
Pakistan’s phone industry has already moved from importing finished handsets to assembling most of them at home. The next step — making the parts themselves — is harder, and the proposed 50 per cent target gives the industry a seven-year runway to try. If local component makers, technology transfer and investment follow, buyers could eventually see more locally made phones. If they do not, assembly will remain dependent on imported kits, and the target will stay on paper.
