This information stems from the Pakistan Telecommunication Authority (PTA) data for the initial five months of 2024. Local manufacturers and assemblers produced an impressive 13.8 million mobile phones within this timeframe.
Shift from Imports to Local Manufacturing
Historically, Pakistan depended significantly on imported mobile phones. However, government policies aimed at promoting local assembly, coupled with economic factors, have dramatically altered this scenario. Import restrictions enforced in 2023 drastically cut commercial imports to just 1.58 million units. This shift has not only bolstered the local mobile industry but also made phone production more accessible to Pakistanis.
Smartphones Dominate Production
The data clearly indicates a strong preference for smartphones in Pakistan. Out of the 13.8 million locally produced phones, a notable 8.1 million were smartphones, underlining the increasing demand for advanced mobile technology in the country.
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Industry Leaders and Challenges
While the overall production figures are encouraging, the report also points to a decline in production since 2022 due to economic challenges and high-interest rates. Nevertheless, leading brands like Infinix (1.46 million units), Itel, and VGO TEL are at the forefront of local production.
Tax Implications and Future Outlook
The recent budget for the fiscal year 2025 (FY25) introduced an 18% standard tax on all mobile phones, with potentially higher rates for premium models. This could affect affordability and slightly dampen demand. However, with a growing smartphone user base (currently at 61%), the long-term outlook for Pakistan’s mobile phone industry remains optimistic, particularly with a focus on local manufacturing and affordability.
