A surge in officially imported smartphones, led by Apple iPhones and Google Pixel devices, has driven Pakistan's mobile phone imports to Rs520 billion in fiscal year 2026, according to data released by Pakistan Customs on Tuesday. The 258.6 percent jump in unit imports of completely built units (CBUs) reflects a significant shift toward documented, duty-paid channels, as consumers increasingly bypass informal and passport-based import methods. Main Developments CBU smartphone imports rose from approximately 0.29 million units in FY25 to 1.04 million units in FY26, an increase of around 750,000 additional handsets. Pakistan Customs noted that industry feedback suggests 60 to 70 percent of this growth comprised new and used Apple iPhones and Google Pixel devices, neither of which is assembled locally. Duties and taxes collected on mobile phone imports climbed to roughly Rs121 billion in FY26, up 36 percent from Rs89 billion the previous year. Customs officials said duty collection on CBU smartphone imports alone more than doubled over the year, indicating a larger share of the trade has moved into formal, tax-compliant channels at the expense of the grey market. Read also: Why Iranian Tomatoes Aren't Cutting Prices in Pakistan Background Total mobile phone imports for FY26 stood at about 32 million units worth Rs520 billion, compared with 33 million units in FY25. Approximately Rs420 billion—four-fifths of the import value—consisted of CKD (Completely Knocked Down) and SKD (Semi Knocked Down) kits imported by registered local assemblers for domestic production. Only about Rs100 billion, less than one-fifth, represented imports of finished CBU devices. The data was released in response to widespread reports claiming Pakistan spent Rs520 billion on mobile phone imports in FY26, prompting Customs to issue a detailed breakdown distinguishing between CBU imports and CKD/SKD kits. The move toward documented CBU imports was driven partly by the lower cost of official commercial channels compared with passport or CNIC-based imports. Why It Matters The duty differential has made commercial imports the more economical option for consumers. A commercially imported iPhone attracts about Rs150,000 in duties and taxes, compared with roughly Rs190,000 when imported and registered against a passport and around Rs210,000 when registered against a CNIC. This pricing structure is encouraging a shift from informal and passport-based imports to fully documented, duty-paid commercial imports, boosting government revenue and reducing the grey market. The surge in official smartphone imports reflects genuine consumer demand for products unavailable through local assembly, rather than a reversal of Pakistan's assembly-based import policy. As neither Apple nor Google assembles devices in Pakistan, the higher volume of officially imported handsets signals a growing preference for documented channels over informal ones. What's Next The trend toward documented imports is likely to continue as long as the duty differential remains favorable for commercial channels. Customs officials may further refine policies to sustain revenue growth and curb grey-market activity. The increase in duty collection—exceeding the pace of import value growth—suggests that enforcement and compliance measures are yielding results. Observers will watch whether local assemblers respond by expanding production to include brands currently only available through imports.