The Ministry of IT and Telecommunication has announced an ambitious target to achieve $500 million in revenue from smartphone exports over the next three years.
Documents from the ministry reveal that the Government of Pakistan is actively working on developing strategies to boost the competitiveness of local manufacturers in the global smartphone export market.
According to the MoITT document, the government aims to incentivize the local mobile industry by offering a 3% allowance for research and development to mobile manufacturers, with plans to increase this allowance to 8% in the coming years.
According to the IT Ministry, Pakistan currently ranks as the 7th largest market for cellular users worldwide, with approximately 189 million people, representing 78% of its population, owning mobile phones. In 2023, Pakistan produced 21.28 million phones domestically, while imports stood at 1.58 million units.
The IT ministry states, despite its significant domestic production capacity, Pakistan’s current smartphone exports are relatively modest, totaling around 250,000 phones worth approximately $150 million.
However, with 33 handset manufacturers operating in the country and the capacity to meet the entire local demand of 25 million phones annually, there is ample potential for growth in the export market. Moreover, the local manufacturing of mobile phones has already generated around 40,000 jobs in Pakistan, contributing to economic growth and employment opportunities.
Looking ahead, the government is also working on a policy for the indigenization of components, focusing on parts such as chargers, batteries, hands-free sets, USB cables, and packaging. By promoting local manufacturing and enhancing the value chain, Pakistan aims to further strengthen its position in the global smartphone market and drive economic development in the country.