VGO TEL urges government to reconsider plan, warns of impact on low-income consumers and local manufacturing

ISLAMABAD: A major local mobile phone manufacturer has urged the government to reconsider a proposed policy measure that could phase out the production of 2G feature phones in Pakistan, warning that such a move could negatively affect millions of low-income consumers, local industry, investment and digital inclusion efforts.

VGO TEL Pakistan has formally approached the Ministry of Industries and Production, requesting a review of a proposed clause in the draft Mobile and Electronic Devices Manufacturing Policy (MEDMP) 2026-33 that seeks to discontinue new manufacturing licenses for 2G feature phones and phase out existing licenses over time.

In a detailed representation submitted to the ministry, the company argued that feature phones continue to serve a significant segment of Pakistan’s population, particularly low-income households, rural communities, laborers, farmers, senior citizens and first-time mobile users who rely on affordable handsets for basic communication.

According to the company, millions of Pakistanis still use feature phones because of their low cost, ease of use and long battery life. It maintained that forcing consumers to shift to smartphones could place an additional financial burden on economically vulnerable segments of society.

VGO TEL Chief Executive Officer Naveed Gaba said feature phones remain an important part of Pakistan’s mobile ecosystem and continue to account for a substantial share of the country’s handset market. He emphasized that technology transitions should be driven by consumer demand, affordability and market realities rather than regulatory restrictions.

The company further warned that a rapid transition from feature phones to smartphones could increase the country’s import bill and foreign exchange requirements, placing additional pressure on Pakistan’s economy at a time when policymakers are focused on industrial growth, import substitution and economic stability.

Industry stakeholders believe that the continued availability of affordable feature phones also supports broader digital and financial inclusion objectives by enabling access to basic communication services and mobile-based financial platforms for underserved populations.

VGO TEL has called on the government to adopt a market-led approach to technology transition, arguing that consumers and industry should be allowed to determine the pace of migration from legacy technologies to more advanced platforms.

Industry representatives maintain that any policy decision affecting the feature phone segment should carefully consider its potential impact on affordability, employment, local manufacturing, investment and access to communication services for millions of Pakistanis.

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