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Pakistan Phone Market Booms: Local Production Soars Despite Import Challenges

Local mobile phone production in Pakistan is booming, with 13.08 million handsets manufactured in the first five months of 2024. This comes despite a 2023 decline due to import restrictions on accessories.

Domestic production dominates imports. In May 2024 alone, 2.23 million phones were produced locally compared to a mere 0.11 million imported units. This reflects a broader trend – locally produced phones account for 61% of devices on Pakistani networks, with smartphones leading at 61% compared to 39% for 2G feature phones.

Import restrictions in 2023 caused a slight dip in local production, but commercial imports of handsets actually increased, suggesting a shift towards higher-end imported models.

Pakistan’s overall mobile phone imports remain significant. The country imported $1.62 billion worth of phones in the first eleven months of fiscal year 2023-24, a massive 214% increase year-on-year. This growth is even more pronounced in rupee terms, with a 277% increase compared to the same period last year.

While May 2024 saw a slight decrease in mobile phone imports compared to April, it still represents a significant 268% increase year-on-year. The overall telecom sector also reflects strong growth, with imports reaching $2.047 billion during July-May 2023-24, a 138% increase year-on-year.

Pakistan’s mobile phone market is experiencing a dynamic shift, with local production rising and consumer demand for smartphones increasing. While import restrictions continue to impact the industry, the overall trend suggests a growing and evolving Pakistani mobile phone landscape.

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