In the first five months of 2024, mobile assembly and manufacturing companies in Pakistan produced a total of 13.8 million phones, according to data from the Pakistan Telecommunication Authority (PTA). Of these, 8.1 million were smartphones, and 4.98 million were 2G devices, which are simpler phones with basic features.
The company Infinix led the production, manufacturing 1.46 million units. It was followed by other companies like Itel and VGO TEL, which also produced significant numbers of phones.
Despite these production figures, the industry has faced challenges. Economic difficulties and high-interest rates have caused a decline in production since 2022. Additionally, restrictions on imports have sharply reduced the number of phones imported for commercial purposes. In 2023, only 1.58 million phones were commercially imported into Pakistan.
On the positive side, the use of smartphones in Pakistan has increased significantly, with 61% of people now using these advanced devices. However, the government has introduced new tax measures in the FY25 budget. There is an 18% standard tax on mobile phones, and this rate is even higher for more expensive devices.
These developments highlight the mixed state of the mobile phone industry in Pakistan. While local production is substantial, the sector faces economic and regulatory challenges.
At the same time, more people are adopting smartphones, reflecting a shift towards more advanced technology in the country. The new tax policies will likely impact both manufacturers and consumers, particularly those interested in higher-end smartphones.
