Significant Increase in Locally Manufactured Mobile Phones in Pakistan
Recently, there has been a significant increase in the number of mobile phones manufactured locally in Pakistan. From 2016 to 2024, the production of locally manufactured mobile phones has risen from 200,000 to 20 million, while the number of imported mobile phones has seen a noticeable decline.
According to the Pakistan Telecommunication Authority (PTA), 22.59 million mobile phones were manufactured in Pakistan from January to September this year, whereas 1.016 million mobile phones were imported during the same period. Of the locally manufactured mobile phones, 13.9 million are smartphones, and 8.07 million are 2G mobile phones.
It’s worth noting that the parts for these locally manufactured mobile phones are imported from China. The PTA has issued licenses to 38 manufacturers to produce mobile phones locally, with 10 manufacturers producing up to 95% of the mobile phones needed in the country. Imported mobile phones mainly consist of expensive models from Apple and Samsung.
Experts believe that Pakistan’s local mobile phone industry is gradually growing. However, the high tax rates imposed by the government on mobile phones are a major reason for the increase in their prices.
Statistics of Locally Manufactured and Imported Mobile Phones
According to PTA documents available to Urdu News, from January to September, 22.59 million mobile phones were manufactured in Pakistan, while 1.016 million mobile phones were imported during the same period. Of the locally manufactured mobile phones, 13.9 million are smartphones, and 8.07 million are 2G mobile phones.
In 2023, 21.28 million mobile phones were manufactured in Pakistan, while 1.058 million were imported. That year, locally manufactured mobile phones included 13 million 2G mobiles and 8.03 million smartphones. In 2022, 21.94 million mobile phones were manufactured, and 1.053 million were imported. Locally manufactured mobile phones included 8.08 million smartphones and 13.1 million 2G mobile phones.
In 2021, Pakistan manufactured 24.66 million mobile phones, including 10 million smartphones and 14.6 million 2G mobile phones, while 12.626 million mobile phones were imported. In 2020, 13 million mobile phones were manufactured, including 2 million smartphones and 11 million 2G mobile phones. That year, Pakistan imported 24.5 million mobile phones.
In 2019, 11.7 million mobile phones were manufactured in Pakistan, including only 100,000 smartphones and 11.6 million 2G mobile phones, while 16.2 million mobile phones were imported.
Major Mobile Phone Manufacturing Companies in Pakistan
Currently, 10 companies are manufacturing a large number of mobile phones in Pakistan, including Infinix, iTel, VGO Tel, Vivo, Tecno, Redmi, Realme, GFive, Samsung, and Nokia. According to PTA data, Infinix manufactured 2.079 million mobile phones from January to September 2024, followed by iTel with 2.075 million and VGO Tel with 2.013 million mobile phones.
Vivo produced 2.013 million, Tecno 2.003 million, and Redmi 1.089 million mobile phones during the same period. Additionally, Realme manufactured 1.035 million, GFive 1.009 million, Samsung 910,000, and Nokia 906,000 mobile phones.
Challenges and Solutions for the Local Mobile Phone Industry
Urdu News has discussed with manufacturers and experts the reasons behind the high prices of locally manufactured mobile phones despite their local production. Muzaffar Hayat Paracha, Senior Vice Chairman of the Pakistan Mobile Manufacturers Association and CEO of Air Link, believes that if the federal government reduces tax rates on mobile phones, the local industry will further flourish, and mobile phone prices will also decrease significantly.
He explained that the increase in the dollar’s value against the rupee and the imposition of an 18% sales tax on mobile phones are major reasons for the price hike. Paracha suggested that the government should exempt sales tax and instead collect super tax and income tax from traders and companies after some time. This would reduce mobile phone prices and ensure continuous tax revenue for the government.
Muzaffar Paracha noted that Pakistan imports mobile phone parts from China, and the increase in the dollar’s value directly impacts mobile phone prices. Minhaz Gulfaam, President of the Karachi Mobile Phone and Electronics Association, pointed out that 94% of the mobile phones needed in Pakistan are now produced locally, with only 6% being imported. He mentioned that the mobile phone industry pays the highest taxes to the government, and reducing taxes would positively affect the industry and significantly lower prices.
