Pakistan’s mobile phone manufacturing sector has demonstrated remarkable growth, producing 31.38 million units in 2024, marking a significant 47% year-on-year (YoY) increase.
According to data from the Pakistan Telecommunication Authority (PTA), 18.64 million of the 31.38 million units were smartphones, while the remaining 12.74 million units were 2G feature phones.
The surge in local manufacturing can be attributed to a combination of factors, including higher taxes on imported mobile phones, an expanding population, and a favorable shift in market preferences toward domestically assembled devices.
“Pakistan fulfilled 95% of its mobile phone demand through local manufacturing/assembly in 2024, compared to a last five-year (2019-2023) average of 67% and eight-year (2016-2023) average of 47%,” according to a research report of Topline Securities.
Despite this remarkable recovery, the YoY growth compared to 2022 remained at 43% mainly driven by factors such as economic stabilization, a growing preference for locally assembled mobile phones amid higher taxes on imports, and a steadily increasing population, said Sunny Kumar, an analyst at Topline Research.
Local Brands lead the way: Infinix, Itel, Tecno, Xiaomi among top producers
Infinix topped the list of locally assembled brands in 2024, producing 3.98 million units. Other major contributors include Itel (3.64 million), VGO Tel (3.37 million), Tecno (2.85 million), Vivo (2.77 million), and Xiaomi (2.35 million).
As of January 2024, local manufacturing accounted for an impressive 95% of Pakistan’s mobile phone demand, up from an average of 67% in the previous five years and 47% over the past eight years.
Tecno and Xiaomi secured a spot among the top 10 in 2024. Tecno’s production surged by 97% YoY to 2.85 million units, while Xiaomi’s output grew by 79% YoY, reaching 2.35 million units. Air Link Communication also assembled mobile phones, and is well-positioned to capitalize on the growing smartphone sales in Pakistan.
This robust production surge has allowed Pakistan to increase its market share in smartphone usage. With the expanding reach of internet services, smartphones now account for 65% of devices in use on Pakistan’s mobile network, up from 59% in 2023 and 56% in 2022. Conversely, the usage of 2G devices has seen a decline, falling to 35% from 41% in 2023.
Key Facts: Pakistan’s Mobile Production Surge in 2024
- 31.38 million mobile phones were locally manufactured in Pakistan in 2024, a 47% YoY increase.
- Local production met 95% of Pakistan’s mobile phone demand in 2024.
- Infinix led production with 3.98 million units, followed by Itel (3.64 million) and VGO Tel (3.37 million).
- Tecno and Xiaomi saw significant growth, with Tecno up 97% YoY and Xiaomi up 79% YoY.
- Mobile phone imports dropped by 7.46% in the first half of FY25 compared to the same period last year.
Decline in mobile phone imports
Pakistan’s mobile phone imports have dropped by 7.46% in the first half of the fiscal year 2024-25 compared to the same period last year. According to the Pakistan Bureau of Statistics (PBS), the country imported mobile phones valued at $733.425 million from July to December 2024, down from $792.581 million during the same months in 2023-24.
In December 2024, mobile phone imports in Pakistan fell by 7.27% compared to the same month last year. Imports totaled $163.257 million, while exports for December 2023 were recorded at $176.063 million.
Despite this, the telecom sector import bill rose 22.61% to $1.03 billion in 1HFY25, up from $840 million last year. In FY24, mobile phone imports totaled $65.6 million, nearly six times the $11.6 million recorded in FY23. However, the demand remained high, with locally manufactured units fulfilled 95% of the market demand.
Impact of Import Restrictions and Economic Factors
The notable increase in local mobile production is a direct result of the import restrictions imposed in 2023. These restrictions were introduced to curb the outflow of foreign currency and balance the country’s import-export gap.
As a result, imports of mobile phones sharply declined from 24.51 million units in 2020 to just 1.58 million units in 2023. In contrast, local manufacturers capitalized on the opportunity, producing significantly higher numbers than in previous years.
Despite the impressive growth, the industry has faced challenges, particularly with economic fluctuations and rising interest rates, which have hindered further growth in some areas. From 2021 to 2023, local production dropped from 24.66 million units to 21.28 million units, a decrease of approximately 13.71%. However, the recent recovery in 2024 highlights the industry’s resilience.
Expanding Mobile Market in Pakistan
The growing demand for mobile devices is also reflected in the country’s overall mobile connections, which stood at 188.9 million as of January 2024, covering 77.8% of the population. With more than 193 million mobile phones in use across Pakistan, the country now ranks seventh globally in terms of mobile phone penetration.
As the local assembly of mobile phones continues to thrive, the country is also witnessing a shift in consumer preferences, with mobile brands like Infinix, Itel, and Tecno gaining significant market shares. The ongoing efforts by local manufacturers, supported by Chinese companies, have contributed to making Pakistan one of the fastest-growing mobile phone manufacturing hubs in the region.
