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Pakistan Now Fulfils 95% of its Mobile Phone Demand Through Local Production

Local manufacturing/assembling of mobile phones in Pakistan surged by 55 percent to 2.23 million units in May 2024 compared to May 2023 with country now fulfilling 95 percent of its mobile phone demand through local manufacturing.

According to the latest data released by the Pakistan Telecommunication Authority (PTA), May 2024’s numbers took 5M2024 total locally manufactured/assembled mobiles to 13.1 million units, up 168 percent over the same period last year.

Brokerage firm Topline Securities said that this improvement was mainly led by import restrictions last year coupled with gradual economic recovery.

Pakistan now fulfills 95 percent of its mobile phone demand through local manufacturing/assembly, compared to the last 5-year (2019-2023) average of 67 percent and 8-year (2016-2023) average of 47 percent.

Topline said that all mobile brands except the iPhone are now being manufactured/assembled in Pakistan. Over the past 3-years, Pakistan has undergone a significant shift from imported mobile phones to local manufacturing and assembly.

This transformation followed the government’s announcement of a local mobile manufacturing policy in 2020 aimed at encouraging international mobile players to establish assembly plants in Pakistan. The shift towards locally manufactured/assembled mobile phones is also driven by their affordability, offering a price gap of 15-20 percent compared to imported mobile phones of the same build quality.

In 2016, only 1 percent (0.29 million units) of mobile phones were assembled locally in Pakistan, with 99 percent (21.36 million units) being imported. However, in 5M2024, Pakistan imported only 5 percent (0.75 million units) of its mobile phones, while local manufacturing/assembly accounted for 95 percent (13.08 million units).

Within the locally assembled mobile phones during 5M2024, 62 percent (8.1 million units) are smartphones, while the remaining 38 percent (4.98 million units) are 2G phones.

In 2020, Pakistan experienced a peak total demand of 37.56 million units of mobile phones. This highest demand was driven by the COVID-19 pandemic, during which many people stayed at home, leading to a rising trend of remote work, e-commerce, and online education.

Topline said that based on the current monthly run rate and the recent imposition of an 18 percent sales tax on all mobile phones in Budget FY25, total mobile phone demand may reach 30- 35 million units in 2024 against 22.9 million units sold in 2023.

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  • Fake

    Is it local assembly or local manufacturing? Both at not same.

    Assembly is just piecing the imported item together
    Apple , Samsung don't have manufacturing plants in pakistan. So it's still imported

    Also PTA so charges the same fee regardless.

    So this article is completely pointless

    • This is PTA's data and they issue combined data of both assembly and manufacturing. It isn't "fake". Local assembly is also much better than altogether replying on imports as it generates employment and its the first step of going towards manufacturing.

  • is this a good news? they have forced people into buying 3rd grade phone due to which they are forced to buy cheaper chinese garbage

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