Budget 2025–26: Mobile Phones to Become More Expensive in Pakistan

With the announcement of Pakistan’s Federal Budget 2025–26 just around the corner, experts are warning of another possible price hike in mobile phones, especially imported ones. As part of the government’s strategy to increase revenue and reduce imports, smartphones — particularly mid-range to premium models — could see higher prices in the coming months.

Why Mobile Phone Prices Might Go Up?

Several factors in the upcoming budget point toward a potential increase in the cost of mobile devices:

1. Higher Taxes & Duties

To boost tax collection, the government is considering:

• Increasing the General Sales Tax (GST) on smartphones, possibly beyond the current 18%.
• Raising customs duties on imported phones, especially high-end models.
• Enhancing Withholding Tax (WHT) on phone purchases or imports.

These tax hikes will directly impact the retail price of phones for consumers.

2. Reduced Import Relaxations

The government may tighten import policies to protect foreign exchange reserves. This includes:

• Removing tax exemptions on mobile imports under specific value ranges.
• Introducing stricter conditions on overseas shipments of mobile devices.

This could make even budget-friendly phones costlier or harder to find in the local market.

3. Currency Depreciation

The Pakistani Rupee’s devaluation against the US Dollar also plays a big role. Since most phones are imported:

• A weaker rupee means higher costs for retailers, which are passed on to buyers.
• Even phones assembled locally still rely on imported components, which will become more expensive.

Who Will Feel the Impact?

While this change affects all mobile users, the impact will be stronger on:

• Students and low-income users, who rely on affordable smartphones for education and work.
• Small businesses and freelancers using smartphones for e-commerce and online services.
• Tech enthusiasts, as flagship models from Apple, Samsung, and others may become out of reach.

Estimated Price Impact

If new taxes are implemented, phone prices could rise by:

• Rs. 5,000–15,000 on mid-range models
• Rs. 20,000–50,000+ on high-end and flagship devices
• Budget phones might become Rs. 2,000–5,000 more expensive

What the Government Might Say

The government may justify the decision by stating:

• The move aims to reduce luxury imports and stabilize the economy.
• Additional tax revenue will help fund welfare programs like BISP or health cards.
• It encourages the use of locally manufactured or assembled phones.

Industry Reactions & Concerns

• Retailers and mobile dealers are concerned that the tax hikes may reduce sales.
• Consumers fear affordability issues, especially for students and daily users.
• The tech industry urges the government to support local manufacturing rather than simply increasing taxes.

Final Thoughts

In short, if the proposed tax hikes are approved in Budget 2025–26, buying a new mobile phone in Pakistan will likely become more expensive — especially imported models. While this may help government revenues, it could also limit access to technology for millions of Pakistanis. Consumers are advised to make informed purchasing decisions ahead of the budget announcement.