Pakistan Sees Sharp Decline in Mobile Phone Imports in July FY25

Pakistan’s mobile phone imports witnessed a significant drop in the first month of the fiscal year 2024-25. The country imported mobile phones worth $64.504 million in July 2024, reflecting a 5.30% decrease compared to the $68.113 million imported during the same period last year. In local currency terms, this amounts to Rs. 17.957 billion, marking a 6.18% decline from Rs. 19.140 billion recorded in July 2023.

The decrease in imports is even more drastic when observed on a month-to-month basis. In June 2024, the nation imported mobile phones worth $278.574 million, making the $64.504 million figure for July 2024 a 76.84% drop. This stark reduction comes as the government continues to implement stringent measures aimed at curbing non-essential imports and stabilizing the country’s foreign exchange reserves.

Broader Telecom Sector Performance

Interestingly, despite the sharp decline in mobile phone imports, the overall telecom imports in Pakistan experienced growth. The total telecom imports for July 2024 reached $102.587 million, representing a 13.25% increase from the $90.588 million recorded in July 2023. This growth indicates that while mobile phone imports have dipped, other telecom-related imports, such as equipment and services, have offset this decline, contributing positively to the sector’s overall performance.

Over the entire fiscal year 2023-24, Pakistan imported mobile phones valued at $1.898 billion, a substantial 233% increase from $570.071 million in the previous fiscal year. This surge highlights the robust demand for mobile devices in Pakistan, despite economic challenges such as inflation and currency depreciation.

Growth in Local Manufacturing and Assembly

In contrast to the decline in imports, Pakistan’s local mobile phone manufacturing and assembly sector has shown remarkable growth. During the first half of 2024 (January to June), local plants produced 17.34 million mobile handsets, a significant increase compared to the 0.84 million units that were imported commercially. This shift towards local manufacturing aligns with the government’s broader strategy to reduce dependency on imports and promote domestic production.

June 2024 alone saw the assembly of 4.26 million mobile handsets locally, with only 0.08 million units being imported. Over the first five months of the year, a total of 13.08 million handsets were produced domestically, compared to 0.76 million imported units. This trend not only underscores the growing capabilities of Pakistan’s manufacturing sector but also points to a strategic pivot towards enhancing local production to meet domestic demand.

The Shift Towards Smartphones

A significant portion of the locally manufactured handsets are smartphones, reflecting the country’s ongoing digital transformation. Out of the 17.34 million handsets produced in the first half of 2024, 11.15 million were smartphones, while 6.19 million were 2G feature phones. Data from the Pakistan Telecommunication Authority (PTA) reveals that 61% of mobile devices currently active on the network are smartphones, with the remaining 39% being 2G devices. This shift highlights the increasing penetration of digital services and internet connectivity in Pakistan, driving the demand for more advanced mobile devices.

The steep decline in mobile phone imports in July 2024, coupled with the rise in local manufacturing, represents a significant shift in Pakistan’s telecom landscape. The government’s policies aimed at reducing imports and bolstering domestic production appear to be paying off. However, sustaining this momentum will require continued investment in local manufacturing capabilities and supportive policies that encourage technological advancement. As Pakistan moves towards greater self-reliance in the telecom sector, these developments could have far-reaching implications for the country’s economic stability and technological growth.