Pakistan’s telecom sector witnessed a dramatic surge in imports during the financial year 2024 (July-March), according to the Economic Survey 2023-24. Imports reached a staggering $1.623 billion, marking a 117.9% increase compared to just $745 million in the same period the previous year.
Mobile phone imports were the driving force behind this growth, jumping a significant 181.3% to reach $1.3 billion. This stands in stark contrast to the previous year’s figures, where mobile phone imports amounted to $462.7 million.
The survey attributes this rise in mobile phone imports to the removal of import restrictions and a strengthening rupee since September 2023, which created a more favorable environment for purchases.
However, this surge in telecom imports comes amidst a broader decline in Pakistan’s overall imports. The country’s total imports for July-March FY2024 witnessed an 8.7% decrease, reaching $39.9 billion compared to $43.7 billion in the same period last year. This decline is attributed to “policy tightening and other administrative measures,” according to the survey.
Despite the overall import contraction, March 2024 saw a year-over-year increase of 29.8% in imports, with the figure reaching $4.9 billion compared to $3.8 billion in March 2023.
Similar to its exports, Pakistan’s imports are heavily concentrated in a few key countries. China, Saudi Arabia, UAE, and Indonesia account for roughly half of the nation’s total imports. Interestingly, China’s share of imports increased from 21% to 26% during July-March FY2024, while the USA’s share dropped from 4% to 3% during the same period. This trend coincides with China being one of the three countries with which Pakistan has a Free Trade Agreement (FTA).
The Economic Survey highlights a significant shift in Pakistan’s telecom sector, with mobile phone imports leading a substantial increase in overall sector imports. This growth comes against the backdrop of a decline in overall national imports, suggesting a specific focus on mobile phone acquisition within the Pakistani market.
