Pakistani government is reportedly gearing up to revamp its Mobile Device Manufacturing Policy, marking a significant step toward enhancing the country’s manufacturing capabilities and positioning itself as a key player in the global tech market. This updated policy is set to introduce new localization targets, export conditions, and an expanded scope to include tablets, Internet of Things (IoT) devices, Point-of-Sale (POS) systems, and Radio Frequency Identification (RFID) technology. The initiative represents a collaborative effort by the Pakistan Telecommunication Authority (PTA), the Engineering Development Board, and the Ministry of Industries and Production.
Pakistan’s local mobile device manufacturing industry has witnessed extraordinary growth in recent years, becoming a testament to the potential of strategic policymaking and regulatory oversight. During the first 11 months of 2024, local assembly plants produced an impressive 28.43 million mobile handsets. Of these, 17.01 million were smartphones, while 11.42 million were 2G handsets, according to PTA data. This figure starkly contrasts with the mere 1.49 million handsets imported during the same period. Furthermore, smartphones now account for 65% of all devices operating on Pakistani networks, indicating a significant shift in consumer demand toward advanced technology.
The journey of the mobile manufacturing industry’s resurgence began in earnest with the implementation of the Device Identification Registration and Blocking System (DIRBS) in 2019. This system laid the foundation for the Mobile Device Manufacturing Policy introduced in 2021, which incentivized local production and reduced dependence on imports. The impact of these measures is evident: in FY 2023-24, 94% of the 31.4 million devices manufactured or imported into the country were produced locally. This shift has not only driven technological adoption but has also created approximately 60,000 jobs, boosting the economy and fostering skills development.
Pakistan’s ambitions extend beyond meeting domestic demand. By leveraging its low-cost labor force and export-friendly policies, the government aims to position the country as a global exporter of mobile devices. The PTA has already granted manufacturing authorizations to 39 companies, including leading international brands like Samsung, Infinix, Tecno, Vivo, and Oppo. This move underscores the commitment to adhering to international standards of quality and affordability, thereby fostering consumer trust and enhancing the reputation of Pakistani-manufactured devices in global markets.
Despite its successes, the industry faces challenges. The COVID-19 pandemic and ongoing economic turbulence have tested the resilience of the manufacturing sector. Additionally, while the government has set its sights on diversifying into tablets and IoT devices, structural issues such as inconsistent policies and inadequate infrastructure remain significant hurdles. The reliance on imported mobile phone parts further underscores the need for developing a robust supply chain ecosystem.
Import trends also highlight a complex picture. Mobile phone imports during the first five months of FY 2024-25 were valued at $570.167 million, reflecting a 7.52% decline compared to the previous year. However, a month-on-month analysis shows a 14.32% increase in imports in November 2024, indicating a mixed trend driven by fluctuating market demands.
The government’s efforts to revamp the Mobile Device Manufacturing Policy demonstrate a vision for long-term economic growth and technological advancement. While the plan to include tablets and IoT devices in the manufacturing landscape is commendable, its success depends on addressing fundamental challenges such as economic instability, infrastructure deficits, and the need for consistent regulatory support.
Pakistan’s journey from introducing DIRBS to building a thriving local manufacturing sector underscores the transformative power of visionary policies and collaborative efforts. If the government successfully tackles existing challenges and nurtures this growing industry, the country could emerge as a global leader in tech manufacturing, fostering innovation and driving economic growth for years to come.
