In May 2024, Pakistan saw a remarkable increase in the manufacturing and assembly of mobile phones, with 2.23 million units produced locally. This represents a 55%<\/strong> year-over-year (YoY) growth, as reported by the Pakistan Telecommunication Authority (PTA).<\/p>\n\n\n\n From January to May 2024, a total of 13.1 million mobile phones were manufactured and assembled locally, marking a 168%<\/strong> YoY increase. This surge is attributed to import restrictions imposed last year and the gradual economic recovery.<\/p>\n\n\n\n Currently, 95%<\/strong> of Pakistan’s mobile phone demand is met through local manufacturing and assembly. This is a significant rise compared to the average of 67%<\/strong> over the past five years (2019-2023) and 47%<\/strong> over the past eight years (2016-2023).<\/p>\n\n\n\n Over the last three years, Pakistan has shifted significantly from importing mobile phones to local production. This change was driven by the government’s 2020 policy to encourage international mobile companies to set up assembly plants in Pakistan.<\/p>\n\n\n\n Locally manufactured mobile phones are more affordable, offering a 15-20%<\/strong> price advantage over imported phones of the same quality.<\/p>\n\n\n\n Out of the 13.08 million locally assembled phones in 2024, 62%<\/strong> (8.1 million units) are smartphones, while the remaining 38%<\/strong> (4.98 million units) are 2G phones.<\/p>\n\n\n\n Due to the imposition of an 18%<\/strong> sales tax on all mobile phones in Budget FY25, it is expected that the total demand for mobile phones in 2024 will range between 30-35 million units, compared to 22.9 million units sold in 2023.<\/p>\n\n\n\nYear-to-date performance<\/h2>\n\n\n\n
Local production fulfills the demand<\/h2>\n\n\n\n
Shift from imports to local manufacturing<\/h2>\n\n\n\n
The cost advantage of locally produced phones<\/h2>\n\n\n\n
Historical comparison of mobile phone production and imports<\/h2>\n\n\n\n
Year<\/th> Imports (mn units)<\/th> Local Manufacturing\/Assembly (mn units)<\/th> Total (mn units)<\/th><\/tr><\/thead> 2016<\/td> 21.4<\/td> 0.3<\/td> 21.7<\/td><\/tr> 2017<\/td> 18.1<\/td> 1.7<\/td> 19.8<\/td><\/tr> 2018<\/td> 12.1<\/td> 5.2<\/td> 17.3<\/td><\/tr> 2019<\/td> 16.3<\/td> 11.7<\/td> 28.0<\/td><\/tr> 2020<\/td> 24.5<\/td> 13.1<\/td> 37.6<\/td><\/tr> 2021<\/td> 10.3<\/td> 24.7<\/td> 34.9<\/td><\/tr> 2022<\/td> 1.5<\/td> 21.9<\/td> 23.5<\/td><\/tr> 2023<\/td> 1.6<\/td> 21.3<\/td> 22.9<\/td><\/tr> 5M2024<\/td> 0.8<\/td> 13.1<\/td> 13.8<\/td><\/tr><\/tbody><\/table> Current mobile phone types<\/h2>\n\n\n\n
Demand forecast<\/h2>\n\n\n\n
Impact on companies<\/h2>\n\n\n\n