Mobile phone makers seek action against smuggled, cloned devices

ISLAMABAD: Mobile phone manufacturers have asked the government to take action against the sale of smuggled, stolen and cloned handsets, saying the practice is hurting Pakistan’s formal mobile manufacturing sector and weakening investor confidence.

In a letter to the Pakistan Telecommunication Authority (PTA), the Pakistan Mobile Phone Manufacturers Association (PMPMA) said cloned International Mobile Equipment Identity (IMEI) numbers were being used on illegal devices. The association wrote, “Despite our continuous engagement with your office, we regret that IMEI numbers are being copied from genuine, legally imported devices.”

According to the association, the practice involves taking IMEI codes from authentic mobile phones and assigning them to counterfeit, illegally imported or stolen handsets. It said such devices are then presented as duty-paid and legitimate, even though some may be stolen phones brought from other countries.

The PMPMA said unauthorised imports had entered the domestic market without completing required regulatory procedures or payment of applicable duties. It urged the PTA to introduce what it described as an effective and technologically advanced IMEI tracking and verification system to stop cloning.

Industry raises concerns over market impact

The association represents 33 manufacturers of local and international mobile phone brands operating in Pakistan. It said the country’s mobile manufacturing base had expanded considerably and cited sales figures up to March 2026 to underline the sector’s scale.

According to the PMPMA, around 31.79 million devices were sold in the market by March 2026, of which more than 30.86 million were locally assembled. It said these figures reflected the industry’s ability to generate further value addition in Pakistan.

The association also warned that the continued presence of illegal market practices was affecting investor sentiment and discouraging additional investment in the local manufacturing ecosystem.

Warning against used phone imports

In a separate letter sent to the Ministry of Industries and Production, the PMPMA said the sector had created more than 40,000 direct jobs. It also expressed concern over reports that commercial imports of used mobile phones might be permitted.

The association said allowing imports of used and refurbished phones would seriously damage the local assembly industry, discourage industrial investment, reduce documented tax contributions, and create enforcement, consumer and security risks.

It said the local mobile phone assembly sector functions within the documented economy and contributes to the national exchequer through sales tax, income tax, withholding tax, payroll-related taxes, utility payments, compliance costs and formal employment.

By contrast, the association said the trade in used phones had historically remained much less documented and did not contribute to national revenue in proportionate terms.

It said permitting commercial imports of used mobile phones at the current stage of Pakistan’s industrial development would be a harmful policy move that would undermine the tax-paying formal sector and encourage the grey market in mobile phone trade.