ISLAMABAD

Pakistan is considering abolishing taxes on mobile phones in a move that could significantly reduce smartphone costs and accelerate digital adoption across the country, officials told lawmakers this week.

Minister of State for Interior Tariq Fazal Chaudhry informed the Senate that the proposal is currently under review, with authorities exploring ways to ease the financial burden on mobile users and overseas Pakistanis.

Officials said the review includes taxes linked to PTA registration and customs duties imposed on imported mobile phones, which have long been criticized for making smartphones unaffordable for many consumers.

The development comes as Pakistan pushes for wider digital connectivity and prepares for future 5G expansion, with telecom operators also urging the government to reduce taxes on smartphones and telecom equipment in the upcoming budget.

Industry stakeholders argue that high mobile taxation is slowing digital inclusion, particularly among low-income users, while limiting access to online education, digital banking, freelancing, and e-commerce services.

Pakistan currently imposes multiple taxes and duties on imported phones under the PTA registration framework, often making premium smartphones significantly more expensive for local buyers.

Analysts say any reduction or abolition of mobile phone taxes could boost smartphone penetration, strengthen Pakistan’s digital economy, and support broader adoption of high-speed internet services ahead of the country’s planned 5G rollout.