Pakistanis are snapping up mobile phones at an unprecedented rate, with imports skyrocketing by over 200% in the first ten months of the current fiscal year. According to data from the Pakistan Bureau of Statistics (PBS), the country imported a staggering $1.462 billion worth of mobile phones between July 2023 and April 2024, compared to just $473.287 million during the same period last year. This growth is even more impressive when viewed in rupee terms, with imports reaching Rs. 414.276 billion, a surge of 279.52% year-on-year.
The import trend shows no signs of slowing down. April 2024 saw a 5.44% increase in mobile phone imports compared to March 2024, while the year-on-year increase for April 2024 is a staggering 1424.42% compared to April 2023.
This growth isn’t limited to just mobile phones. Overall telecom imports into Pakistan also witnessed significant growth, reaching $1.834 billion during July-April 2023-24, a 135.44% increase year-on-year.
However, while Pakistanis are enjoying increased access to mobile devices, the story of domestic manufacturing is less rosy. Local production has faced challenges due to restrictions on opening letters of credit (LCs) for mobile phone accessories. Despite these hurdles, local plants managed to produce 6.1 million mobile handsets in the first two months of 2024, compared to just 0.3 million imported commercially during the same period. This production includes a mix of 2G and smartphones, reflecting the current network composition in Pakistan where 60% of devices are smartphones, according to the Pakistan Telecommunication Authority (PTA).
The limited growth in local manufacturing is concerning. Compared to 2023, production has actually declined by around 4%. While commercial imports have increased, Pakistan’s mobile phone export figures remain low. Minister of State for IT and Telecommunication, Shaza Fatima Khawaja, highlighted that despite having 35 mobile manufacturing companies in the country, Pakistan only exported a meager 0.2 million mobile phone units.
This situation presents Pakistan with a challenge: how to meet the surging demand for mobile phones while also fostering a robust domestic mobile phone industry. Addressing import restrictions and finding ways to support local manufacturers will be crucial in ensuring Pakistan benefits from the mobile phone boom not just as consumers, but also as an exporter and economic player in the global tech industry.
