Pakistan’s mobile phone industry is experiencing a significant transformation, with local manufacturing and assembly surging by 55% in May 2024 compared to the same month last year. This surge has resulted in the country fulfilling a remarkable 95% of its mobile phone demand through domestic production.
According to PTA, local production has skyrocketed in 2024. The first five months saw a staggering 168% increase in locally manufactured/assembled phones compared to the same period in 2023. This growth is attributed to import restrictions implemented last year and a gradual economic recovery.
This shift towards self-sufficiency is a stark contrast to the past. In 2016, a mere 1% of mobile phones used in Pakistan were locally assembled. Today, imported phones make up only 5% of the market, with all major brands except iPhone now being produced domestically.
The affordability of locally made phones is a key driver of this trend. Consumers benefit from a 15-20% price advantage compared to imported phones of similar quality.
This transformation began in 2020 with the government’s introduction of a local mobile manufacturing policy. This policy aimed to attract international players by creating an environment conducive to establishing assembly plants in Pakistan.
The future of Pakistan’s mobile phone market looks promising. While the peak demand of 37.56 million units witnessed in 2020 (driven by the COVID-19 pandemic) is unlikely to be repeated, analysts at Topline Securities predict a total demand of 30-35 million units in 2024, exceeding the 22.9 million units sold in 2023. This growth is further fueled by the recent imposition of an 18% sales tax on all mobile phones, potentially pushing consumers towards more affordable domestically produced options.
