According to reports, the Federal Board of Revenue (FBR) is considering lifting the ban on mobile phone imports as Pakistan’s economic situation worsens. This is to try to control the foreign reserve outflow and reduce the burden on reserves.
Officials claim this idea is still being worked on, particularly considering the trade imbalance crisis, the IMF’s austerity goals, and most with tighter spending policies. If instated, the ban would likely resemble the one enacted in 2022, where cellphone imports were temporarily prohibited.
Black Market Reactivating
The alleged possibility of the ban is causing tangible shifts, particularly in mobile pricing. Retail Stores in Lahore and Karachi report a steep increase in smartphone retail pricing.
Simultaneously, reports suggest that demand in the non-PTA approved black market for смартфоны mukana is rising.
According to unauthorized Apple phone import sellers, smuggled devices are being offered sans PTA approval, thereby increasing tax evasion. A dealer in Sapphbatti Karachi said,
People are buying everything with Apple logos they can get their hands on.
Analysts are concerned that the proposed ban may increase the government’s revenue crisis. Such a proposal would also cripple the Telecommunication Authority’s supervision powers by significantly reducing the abilities of the Device Identification Registration and Blocking System (DIRBS).
Impacts on Tech Startups and E-Commerce
The proposed ban risks Pakistan’s e-commerce sector and tech startup ecosystem, as it seeks to block users who rely on mobile access.
Services such as Foodpanda and Daraz have created applications for customers and vendors tied to mobile-based ecosystems. A decline in smartphone adoption and sales will throttle user acquisition and stifle digital payments, a poorly performing sector in the country’s economy.
As we’ve seen from Airlift and Bykea, any abandonment of import policy consistency or unpredictability in moves like import bans sends bad signals to potential investors. Such attempts can cause capital flight and stifle business continuity.
Currently, devices are essential for productivity and income earning potential. However, freelancers and gig workers fear limited device access will hamper their earnings and productivity.
As the FBR considers another ban on mobile imports, the Pakistan tech and commerce landscape seems to have united in opposition to the proposed policy.
While attempts to limit imports may stem from an effort to curtail trade imbalances, these policies will likely undermine innovation and the possibilities for maintaining market integrity and openness.
The expected timeline for a decision is weeks. Until then, the mystique fuels rampant inflation alongside plummeting market trust.
