KARACHI: Pakistan is now assembling almost all global brands of mobile phones locally. This has increased the ‘Made in Pakistan’ production to 95% of the local demand, while only 5% of phones are now imported. As parts are still imported, local production saves about 15-20% in foreign exchange.
According to a report by research based on the Pakistan Telecommunication Authority’s (PTA) data, in 2016, only 1% (0.29 million units) of mobile phones were made in Pakistan, with 99% (21.36 million units) imported. However, from January to May 2024, Pakistan imported only 5% (0.75 million units) of its mobile phones, while 95% (13.08 million units) were locally made.
Idrees Memon, a former chairman of the Karachi Electronic Dealers Association, said Pakistan has started exporting a significant number of ‘Made in Pakistan’ mobile phones, mostly to the Middle East. However, the new 18% sales tax on phones in the 2024-25 budget might reduce exports.
Memon, a former president of the Karachi Chamber of Commerce and Industry (KCCI), confirmed that except for Apple, almost all global brands (mainly Chinese ones) are now assembled locally. This saves “about 70% in foreign exchange,” with the duty on importing phone kits being Rs3,000-5,000 per unit compared to Rs30,000 on finished units, saving up to 90% in taxes. He said around 18-20 companies are making branded phones in Pakistan, and many more are involved in assembly, providing jobs to hundreds of thousands of people.
Phone demand has surged in Pakistan post-Covid-19, as many people switched to digital solutions using smartphones. The value of phone imports in dollars increased threefold in the last fiscal year compared to the previous year. According to the Pakistan Bureau of Statistics (PBS), mobile phone imports (CKD/CBU) rose 214% to $1.62 billion in the first 10 months of FY24 compared to $516.5 million the previous year.
Topline Research’s Kumar said local companies made 2.23 million units (up 55% year-on-year) in May 2024. This brings the total local production to 13.1 million units in the first five months of 2024, a 168% increase compared to last year. This growth is due to import restrictions last year and gradual economic recovery. Now, 95% of Pakistan’s mobile phone demand is met through local production, compared to a 5-year average of 67% and an 8-year average of 47%. He said: “All mobile brands except iPhone are now made in Pakistan,”
Over the past three years, Pakistan has shifted from imported to locally made phones. This followed the government’s 2020 policy encouraging international mobile companies to set up assembly plants in Pakistan.
Locally made phones are more affordable, “costing 15-20% less than imported phones of the same quality.”
Of the 13.08 million locally assembled phones in the first five months of 2024, 62% (8.1 million units) are smartphones, and 38% (4.98 million units) are 2G phones.
