Karachi, August 17, 2024 – Mobile phone imports in Pakistan have witnessed a staggering 77% decline on a month-on-month (MoM) basis in July 2024, according to data released by the Pakistan Bureau of Statistics (PBS).
The imports, which were recorded at $64.50 million in July 2024, marked a sharp decrease from the $278.57 million registered in June 2024. This significant drop has been largely attributed to the implementation of higher taxes starting from July 1, 2024.
In the federal budget for 2024-25, announced in June 2024, the government introduced increased duties and taxes on mobile phone imports. The anticipation of these elevated tax rates prompted importers to stockpile mobile phones before the new tax regulations took effect, resulting in a surge in imports in June and a subsequent decline in July.
On a year-on-year (YoY) basis, mobile phone imports in July 2024 also saw a decline, dropping by 5.30% compared to $68.11 million in July 2023. The sharp decrease in July imports reflects the impact of the government’s new tax measures on the mobile phone market.
Mobile phones have been one of Pakistan’s major import categories. In the fiscal year 2023-24, the country imported mobile phones worth $2.37 billion, representing a 147% increase from the $957 million imported in the previous fiscal year. This significant rise was driven by strong consumer demand and the preemptive surge in imports ahead of the new tax regime.
The current slump in imports is expected to have a ripple effect on the local market, potentially leading to higher prices for consumers and a slowdown in the availability of newer mobile phone models. Industry experts are closely monitoring the situation, as the government’s tax policies continue to shape the dynamics of the mobile phone market in Pakistan.
As the market adjusts to the new tax environment, stakeholders in the mobile phone industry are urging the government to reconsider the heightened tax rates, citing concerns over the affordability and accessibility of mobile devices for the general population. The ongoing situation remains fluid, with future import trends likely to be influenced by both domestic and global economic factors.