Pakistan’s locally assembled mobile phone industry experienced remarkable growth in 2024, with production rising by 47% year-over-year to reach 31.4 million units. This surge, as reported by Topline Securities analyst Sunny Kumar using data from the Pakistan Telecommunication Authority (PTA), underscores the impact of government policies that prioritized local manufacturing over imports.
The boom in domestic assembly has been fueled by a combination of economic recovery, import restrictions, and favorable taxation policies. The government’s decision to impose high tariffs on imported mobile phones—reaching up to 30%—while keeping locally assembled devices within the 10–15% tax bracket has played a key role in shifting consumer preferences. Additionally, restrictions on mobile phone imports, introduced in 2023 to curb dollar outflows, forced retailers and consumers to opt for local alternatives.
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December 2024 marked a historic milestone, with domestic manufacturers producing 2.95 million units—a 28% increase compared to the previous month. The fourth quarter alone recorded 8.8 million locally assembled phones, showing a substantial 67% jump from Q3’s 5.3 million units. Compared to 2022, annual production has increased by 43%, reflecting a sustained upward trajectory in the sector.
Economic stability has also contributed significantly to this growth. As Pakistan’s macroeconomic environment improved, consumer confidence and purchasing power increased, particularly in urban areas, leading to greater demand for locally produced smartphones. This shift not only strengthened the domestic manufacturing sector but also reduced reliance on foreign imports, supporting job creation and industrial expansion.
Background and Growth Drivers
Pakistan’s mobile phone manufacturing industry has undergone significant transformation in recent years. Previously, the market relied heavily on imported smartphones, with local assembly accounting for a small fraction of total sales. However, with rising trade deficits and foreign exchange challenges, the government introduced import restrictions and higher tariffs on foreign brands. These measures, combined with tax incentives for local manufacturers, laid the foundation for the sector’s expansion.
In addition to policy changes, economic recovery in 2024 played a crucial role in stimulating demand. As inflationary pressures eased and business confidence improved, consumer spending on technology, particularly in metropolitan areas, increased. This created an environment where locally assembled phones became a cost-effective and viable option for a large segment of the population.
