Pakistan’s local manufacturing and assembling plants produced 17.34 million mobile handsets in the first half of 2024, significantly overshadowing the 0.84 million units that were imported commercially during the same period.
Official data shows a notable surge in domestic production, with 4.26 million handsets manufactured in June alone, compared to just 0.08 million imported.
Breaking down the numbers further, local plants assembled 13.08 million mobile handsets from January to May 2024, with 0.76 million imported commercially during these five months. The total 17.34 million locally made handsets comprise 6.19 million 2G phones and 11.15 million smartphones.
According to the Pakistan Telecommunication Authority (PTA), 61% of mobile devices on Pakistan’s network are smartphones, while 39% are 2G devices.
In stark contrast, Pakistan’s mobile phone imports stood at $1.898 billion for the fiscal year 2023-24, a 233% increase from $570.07 million in the previous fiscal year. In rupee terms, imports amounted to Rs535.69 billion in 2023-24, marking a 291.45% rise from Rs136.85 billion in 2022-23. This surge is reflected in the month-on-month data for June 2024, where mobile phone imports jumped by 76.77%, reaching $278.57 million compared to $157.59 million in May 2024. Year-on-year, imports in June 2024 saw an astronomical increase of 419.90% from $53.58 million in June 2023.
Telecom imports increase
Overall telecom imports into Pakistan also experienced a significant rise, totaling $2.366 billion in 2023-24, which represented a 147.36% increase from the $956.70 million recorded in 2022-23. In June 2024 alone, telecom imports were $320.09 million, showing a year-on-year growth of 232% from $96.42 million in June 2023, and a 51.28% month-on-month rise from $211.59 million in May 2024.
Previously, Pakistan relied heavily on imported mobile phones, with local assembly accounting for only 1% of the market in 2016. However, in the first five months of 2024, local manufacturing/assembly met 95% of the demand, significantly reducing imports to just 5%.
Contributing factors
The shift is attributed to the government’s 2020 mobile manufacturing policy, which encouraged international brands, primarily Chinese, to establish assembly plants in Pakistan. As a result, the country now assembles almost all global mobile brands locally, saving around 70% in foreign exchange and reducing import duties significantly.
Additionally, Pakistan started exporting ‘Made in Pakistan’ phones, mainly to the Middle East, although the new 18% sales tax on phones, effective since July 1, 2024, might also impact exports. Local production surged due to increased demand post-COVID-19, with mobile imports in US dollars tripling in the last fiscal year. This growth provided significant employment opportunities, with 18-20 companies now manufacturing branded phones and many more involved in local assembly.