By Web Desk 
Pakistan imported mobile phones worth $64.504 million in July 2024, marking the first month of the fiscal year 2024-25. This represents a decline of 5.30% compared to the $68.113 million spent on mobile phone imports during the same period in the previous fiscal year (2023-24). In rupee terms, the imports amounted to Rs. 17.957 billion, down 6.18% from Rs. 19.140 billion in July 2023.
The decline in mobile phone imports is even more pronounced when viewed on a month-on-month (MoM) basis. In June 2024, Pakistan imported mobile phones worth a staggering $278.574 million. The $64.504 million worth of imports in July 2024 thus reflects a sharp 76.84% decrease. This significant reduction comes amid the government’s ongoing efforts to curb unnecessary imports and manage the country’s foreign exchange reserves.
Overview of the Telecom Sector
Despite the decline in mobile phone imports, the overall telecom imports into Pakistan grew by 13.25% year-on-year, totaling $102.587 million in July 2024, compared to $90.588 million in July 2023. This indicates that while mobile phone imports have decreased, other telecom-related imports have increased, contributing to the sector’s overall growth.
For the entire fiscal year 2023-24, Pakistan imported mobile phones worth $1.898 billion, a significant increase of 233% compared to the $570.071 million spent in the previous fiscal year (2022-23). This surge in imports highlights the growing demand for mobile devices in the country, despite economic challenges.
Local Manufacturing and Assembly Gains Traction
The local manufacturing and assembly of mobile phones in Pakistan have also seen substantial growth. During the first half of 2024 (January-June), local manufacturing plants produced 17.34 million mobile handsets, a stark contrast to the mere 0.84 million units imported commercially during the same period. This shift towards local production is part of the government’s strategy to reduce reliance on imports and boost domestic manufacturing.
In June 2024 alone, local manufacturers assembled 4.26 million mobile handsets, while only 0.08 million units were imported. This trend was consistent throughout the first five months of the year, with 13.08 million handsets produced locally compared to 0.76 million imported units.
Shift Towards Smartphones
The data also reveals a significant shift towards smartphone usage in Pakistan. Out of the 17.34 million mobile handsets manufactured locally in the first half of 2024, 11.15 million were smartphones, while 6.19 million were 2G feature phones. According to the Pakistan Telecommunication Authority (PTA), 61% of mobile devices on the network are now smartphones, with the remaining 39% being 2G devices. This shift underscores the increasing adoption of digital services and the growing need for internet connectivity across the country.
The significant drop in mobile phone imports in the first month of FY25, coupled with the rise in local manufacturing, indicates a positive shift towards self-reliance in Pakistan’s telecom sector. However, the challenge remains to sustain this momentum and further enhance local production capabilities. The government’s focus on reducing imports and encouraging domestic manufacturing seems to be bearing fruit, but continued efforts will be essential to strengthen the country’s economic resilience and technological self-sufficiency.