Made in Pakistan: Local Phone Production Soars to 95%

This statistic comes from the Pakistan Telecommunication Authority (PTA) data for the first five months of 2024. Local manufacturers and assemblers produced a staggering 13.8 million mobile phones during this period.

Shift from Imports to Local Manufacturing

Previously, Pakistan relied heavily on imported mobile phones. However, government policies promoting local assembly and economic factors have significantly changed this trend. Import restrictions implemented in 2023 drastically reduced commercial imports to a mere 1.58 million units. This shift has not only boosted the local mobile industry but also made phone production accessible to Pakistanis.

Smartphones Dominate Production

The data reveals a clear preference for smartphones in Pakistan. Out of the 13.8 million phones produced locally, a significant 8.1 million were smartphones, highlighting the growing demand for advanced mobile technology in the country.

Industry Leaders and Challenges

While the overall production figures are promising, the report also highlights a decline in production since 2022 due to economic challenges and high-interest rates. However, leading brands like Infinix (1.46 million units), Itel, and VGO TEL are spearheading 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 expensive models. This might affect affordability and dampen demand slightly. However, with a growing smartphone user base (currently at 61%), the long-term outlook for Pakistan’s mobile phone industry remains positive, particularly with a focus on local manufacturing and affordability.