Pakistani lawmaker says parliamentary committee to review high smartphone taxes next month

A shopkeeper shows a mobile phone to a customer at a mobile phone store in Karachi on May 20, 2022. (AFP/File)
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Updated 19 November 2025
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Pakistani lawmaker says parliamentary committee to review high smartphone taxes next month

  • MNA Qasim Gilani calls high import taxes on smartphones 'excessive' after lobbying against them
  • FBR official says taxes have increased local assembly, with 95% handsets now made in Pakistan

ISLAMABAD: A Pakistani lawmaker campaigning to reduce heavy taxes on iPhones and other smart devices said on Tuesday the government has assured that a parliamentary committee will take up the issue next month and work toward a resolution.

Qasim Gilani, a National Assembly member and son of ex-premier and current Senate Chairman Syed Yousuf Raza Gilani, has been lobbying across party lines to ease what he called “unjust and unaffordable” taxes on imported smartphones.

He said that modern devices, especially high-end phones used for work and digital income, are not a luxury item but a necessity for Pakistan’s youth and information technology sector.

Gilani said he had planned to move a resolution against the Pakistan Telecommunication Authority's (PTA) mobile registration tax in the National Assembly but held back after the government urged him to wait for an upcoming committee meeting.

“I have postponed the resolution against unjust PTA tax, which affects millions of Pakistanis, including overseas nationals,” he told Arab News. “The government assured me the issue will be resolved through a parliamentary committee where the FBR [Federal Board of Revenue] chairman will be present.”

The FBR is a government agency responsible for imposing taxes for revenue collection.

Gilani said the National Assembly's Finance Committee will take up the issue on Dec. 3 in the presence of relevant officials, adding he has already secured support from across the political spectrum, including Pakistan Peoples Party Chairman Bilawal Bhutto-Zardari and members of other parties.

He said he was also seeking a meeting with Prime Minister Shehbaz Sharif to build consensus that smartphone taxes should be reduced.

Elaborating his case, the lawmaker said the current tax structure on smartphones was excessive, citing his own experience.

“I paid half a million rupees in tax on just two phones, almost as much as I paid for my car registration," he said. "This is excessive.”

Gilani said he had taken up the matter with IT Minister Shaza Fatima Khawaja and others, all of whom agreed the tax was problematic.

Pakistan’s mobile phone taxes are applied according to the device’s price and whether it is registered on a passport or a computerized national identity card (CNIC).

The amount that needs to be paid on a device registered on a CNIC is much higher.

The FBR website shows low-cost phones carry fixed charges ranging from Rs430 ($1.5) to Rs9,580 ($34). However, devices priced above $200 are taxed more heavily through a combination of a fixed amount plus a 17% sales tax.

A device priced above $500 requires a consumer to pay Rs27,600 ($98) plus 17% sales tax if registered on a passport, or Rs37,007 ($131) plus 17% sales tax if registered on a CNIC.

Overall, the system heavily penalizes expensive smartphones, making high-end devices significantly costlier in Pakistan.

According to Azhar Abbasi, an Apple reseller based in Islamabad, the current PTA tax on the iPhone 17 Pro Max is Rs213,631 ($756) on CNIC.

Asked about the situation, a senior FBR official told Arab News on condition of anonymity that these taxes on smartphones have led to increased local manufacturing.

“More than 95 percent of the 34 million handsets sold in Pakistan are now assembled locally, including Samsung models," he said. "Only 700,000 imported handsets came into the country last year, and just 10 percent of those were iPhones.”

The official acknowledged public frustration mainly arises from taxes on high-end phones, which represent only a small segment of the market, and added the government was working on reforms.


Pakistan’s OGDC ramps up unconventional gas plans

Updated 05 December 2025
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Pakistan’s OGDC ramps up unconventional gas plans

  • Pakistan has long been viewed as having potential in tight and shale gas but commercial output has yet to be proved
  • OGDC says has tripled tight-gas study area to 4,500 square km after new seismic, reservoir analysis indicates potential

ISLAMABAD: Pakistan’s state-run Oil & Gas Development Company is planning a major expansion of unconventional gas developments from early next year, aiming to boost production and reduce reliance on imported liquefied natural gas.

Pakistan has long been viewed as having potential in both tight and shale gas, which are trapped in rock and can only be released with specialized drilling, but commercial output has yet to be proved.

Managing Director Ahmed Lak told Reuters that OGDC had tripled its tight-gas study area to 4,500 square kilometers (1,737 square miles) after new seismic and reservoir analysis indicated larger potential. Phase two of a technical evaluation will finish by end-January, followed by full development plans.

The renewed push comes after US President Donald Trump said Pakistan held “massive” oil reserves in July, a statement analysts said lacked credible geological evidence, but which prompted Islamabad to underscore that it is pursuing its own efforts to unlock unconventional resources.

“We started with 85 wells, but the footprint has expanded massively,” Lak said, adding that OGDC’s next five-year plan would look “drastically different.”

Early results point to a “significant” resource across parts of Sindh and Balochistan, where multiple reservoirs show tight-gas characteristics, he said.

SHALE PILOT RAMPS UP

OGDC is also fast-tracking its shale program, shifting from a single test well to a five- to six-well plan in 2026–27, with expected flows of 3–4 million standard cubic feet per day (mmcfd) per well.

If successful, the development could scale to hundreds or even more than 1,000 wells, Lak said.

He said shale alone could eventually add 600 mmcfd to 1 billion standard cubic feet per day of incremental supply, though partners would be needed if the pilot proves viable.

The company is open to partners “on a reciprocal basis,” potentially exchanging acreage abroad for participation in Pakistan, he said.

A 2015 US Energy Information Administration study estimated Pakistan had 9.1 billion barrels of technically recoverable shale oil, the largest such resource outside China and the United States.

A 2022 assessment found parts of the Indus Basin geologically comparable to North American shale plays, though analysts say commercial viability still hinges on better geomechanical data, expanded fracking capacity and water availability.

OGDC plans to begin drilling a deep-water offshore well in the Indus Basin, known as the Deepal prospect, in the fourth quarter of 2026, Lak said. In October, Turkiye’s TPAO with PPL and its consortium partners, including OGDC, were awarded a block for offshore exploration.

A combination of weak gas demand, rising solar uptake and a rigid LNG import schedule has created a surplus of gas that forced OGDC to curb output and pushed Pakistan to divert cargoes from Italy’s ENI and seek revised terms with Qatar.