Decline in Mobile Phone Imports Reflects Economic and Market Shifts
Pakistan has witnessed a significant decline in mobile phone imports during the first seven months (July-January) of FY 2024-25, according to the latest data from the Pakistan Bureau of Statistics (PBS). The country imported mobile phones worth $868.551 million, reflecting a 12.04% decrease compared to $987.447 million during the same period in FY 2023-24.
In terms of Pakistani Rupees, mobile phone imports stood at Rs 241.571 billion, registering a 14.28% decline from Rs 281.814 billion recorded in the previous fiscal year.
Month-on-Month and Year-on-Year Decline
The decline in mobile imports is part of a larger downward trend seen over the past year. In January 2025, mobile phone imports amounted to $135.127 million, marking a 17.23% decline on a Month-on-Month (MoM) basis compared to $163.257 million in December 2024.
On a Year-on-Year (YoY) basis, the decline is even more significant, with imports dropping 30.66% compared to $194.866 million in January 2024.
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This sharp decline suggests a slowdown in consumer demand for imported smartphones, likely driven by economic constraints, local production efforts, and exchange rate fluctuations affecting purchasing power.
Overall Telecom Imports Also Declining
The downward trend is not limited to mobile phones alone. Total telecom imports into Pakistan stood at $1.191 billion during July-January FY 2024-25, marking a 4.18% decline compared to $1.243 billion in the corresponding period of FY 2023-24.
- MoM Telecom Imports: In January 2025, overall telecom imports dropped 4.30%, reaching $193.998 million, compared to $202.719 million in December 2024.
- YoY Telecom Imports: Telecom imports declined 16.58%, down from $232.568 million in January 2024.
Key Factors Behind the Decline
Several factors contribute to the declining mobile phone and telecom imports in Pakistan:
- Higher Taxes and Import Duties – Increased government-imposed taxes and duties on imported mobile phones have made them more expensive, discouraging imports.
- Economic Challenges – Inflation and currency devaluation have reduced consumer purchasing power, leading to lower demand for high-cost smartphones.
- Growth of Local Manufacturing – Pakistan has ramped up local smartphone assembly, reducing reliance on imports. Brands like Infinix, Tecno, and Vivo have expanded local production, offering more affordable alternatives.
- Regulatory Measures – Government policies aimed at reducing the trade deficit have restricted unnecessary imports, including mobile phones and telecom equipment.
- Consumer Shift Towards Used and Locally Assembled Phones – Rising costs have led more consumers to opt for refurbished, second-hand smartphones, and locally assembled models instead of expensive imports.
Impact on Prices and Market Trends
The decline in mobile imports is expected to have both positive and negative effects on the Pakistani market:
- Higher Prices for Imported Phones – With fewer imported smartphones available, prices could increase, particularly for premium brands like Apple and Samsung.
- Boost for Local Manufacturing – Reduced imports will create an opportunity for locally manufactured phones to gain market share, leading to job creation and investment in the local mobile assembly industry.
- Limited Access to High-End Devices – If the decline continues, access to flagship devices from iPhone, Samsung, and Google Pixel may become even more difficult.
- Reduced Burden on Foreign Reserves – A drop in mobile imports helps reduce Pakistan’s trade deficit, easing pressure on foreign exchange reserves.
Final Thoughts
Pakistan’s mobile phone imports have dropped by 12.04% in the first seven months of FY 2024-25, signaling a shift in consumer behavior and economic realities. While lower imports could benefit local manufacturing and conserve foreign reserves, they may also result in higher prices for imported smartphones and limited access to flagship devices. The government’s continued support for local mobile production and a balanced import policy will play a crucial role in shaping Pakistan’s mobile phone market in the coming months.
