Mobile phone manufacturers in Pakistan have called for implementing a localization policy and measures to curb cellphone smuggling to strengthen the local industry and make devices more affordable.
With 36 local assembly units meeting 95% of domestic demand, the industry has established a strong foothold, creating 40,000 to 50,000 jobs. Leading global brands are also actively involved in the market. However, sluggish sales due to economic challenges have slowed growth, though industry leaders remain optimistic about recovery as the economy stabilises.
Amir Allahwala, Vice Chairman of the Pakistan Mobile Phone Manufacturers Association (PMPMA), highlighted the importance of localisation. He explained that while phones are assembled locally, they rely heavily on imported parts. To encourage domestic production, he urged the government to reduce import duties on raw materials and increase duties on finished components.
Using chargers as an example, Allahwala explained that raw materials for chargers currently face high import duties, while finished chargers are duty-free. “This should be reversed to promote local manufacturing. Raw materials should have zero duty, and finished products should face a 20% duty,” he said, adding that such changes would spur initial localisation efforts and pave the way for further industrial growth.
He also emphasised the need to implement the Mobile Device Manufacturing Policy 2020, which includes measures for localisation, exports, and incentives for research and development. Ensuring a balanced tariff structure and offering export incentives would help the industry expand and compete internationally.
Realme spokesperson Asma Hayat also stressed the need to control illegal sales and smuggling, which undermine the local industry. She called for tax reductions to make phones more affordable for consumers. At a recent event, Hayat announced the launch of Realme C75, a water- and dust-resistant phone with an IP69 rating, capable of withstanding high-pressure water jets.
She noted that Realme sells approximately 150,000 units monthly in Pakistan, with 40,000 units in Karachi alone. Over 2.5 million phones are assembled locally each month across various brands, with annual demand for phone chargers exceeding 30 million units.
While the industry has made significant strides, targeted policies and support from the government are essential to sustain growth and unlock its full potential. By reducing duties on raw materials, curbing smuggling, and introducing export incentives, the mobile phone industry can play a critical role in Pakistan’s economic progress.
