PC Boards & Electronics

Pakistan – PC Boards & Electronics

Pakistan's Consumer Electronics market stands at $7.5b in 2024, and is projected to grow annually by 2.36% (CAGR 2024-2028). The largest segment is telecommunication equipment, with a market size of $4.5b in 2024.

The volume of the Consumer Electronics market is expected to reach 111.1m units by 2028. Locally manufactured mobile devices comprise 71.5% of overall market volume.  Pakistan Exports of electrical, electronic equipment was $94.43m during 2022 & imports for the same amounted to $3.82b during 2022. Household appliance sub-segment contributes to 4% of the LSM output in Pakistan. Its major products occupy over 50% of the total sub-segment market revenue and localization remains around 25%.

Industry Targets 

  • 49% localization by 2025.
  • Reduce GHG emissions by half by 2030

Key Growth Drivers 

  • Population - 240mln and growing
  • 190mln cellular subscribers, with a tele-density of ~80.4%, and ~127mln broadband subscribers

Investment Opportunities 

  • 5G technology market
  • Fastest growing smartphone market
  • JVs for enhanced manufacturing scale in Mobile and consumer electronics
  • Local assembly of mobile handsets
  • Alternative & Green Energy manufacturing 

Government Incentive Schemes 

  • Mobile Device Manufacturing Policy of CY20. 
  • Preferential credit for green initiatives
  • SEZs – land lease etc. fast track land availability 
  • Export Finance Scheme (EFS)
  • Export Finance Scheme for Small and Medium Enterprises (SMEs)
  • SBP Financing Scheme for Renewable Energy
  • Tax rebates for local manufacturing 
  • Custom duty exemption on Import of Capital goods for Mobile Manufacturing.
  • Customs duty exemption on import of mobile phones in CKD/SKD form.
  • Exemption of VAT on import of mobile Phones.
  • Locally assembled /manufactured phones are exempted from withholding tax on domestic sales.
  • Advance tax on specific mobile phones in CKD/SKD form is exempt.
  • Low rate of Sales tax on CKD/SKD condition mobile phones.
  • R&D allowance of 3% to be given to local manufacturers for exports of mobile phones.

 

Link to Investment Policy:

Pakistan Investment Policy 2023

Relevant Ministry & Contact