Pakistanis hoping for cheaper PTA approvals on premium smartphones may have to wait longer, as the government is unlikely to reduce taxes on mobile phones priced above $500 in the upcoming federal budget.

A proposal under consideration suggested cutting the current 25% tax rate to 18% to provide relief, especially for overseas Pakistanis bringing phones from abroad. However, reports indicate the plan is not expected to get approval this year amid ongoing fiscal pressures and IMF-linked revenue targets.

Under existing regulations, imported smartphones remain temporarily functional unless PTA duties and taxes are paid, making Pakistan one of the region’s most heavily taxed mobile markets.

Officials also fear that lowering taxes on imported premium devices could hurt local smartphone assemblers and manufacturers currently benefiting from the existing protectionist structure.

The development comes as policymakers continue debating broader tax reforms ahead of Budget 2026-27, with the government balancing revenue collection, digital growth, and pressure from the IMF for tighter fiscal management.