Karachi, February 18, 2024 – Pakistan has witnessed a remarkable surge in mobile phone imports, with official data revealing that the country spent a staggering amount of Rs 282 billion during the first seven months (July – January) of the fiscal year 2023-24.
This figure represents an astounding increase of over 200 percent compared to the corresponding months of the previous fiscal year when the expenditure stood at Rs 93.17 billion.
Analysts attribute this substantial rise in mobile phone imports to the depreciation in the value of the Pakistani Rupee (PKR) against the US dollar during the same period. The impact of currency devaluation has led to an increase in the cost of imported goods, particularly in the technology sector.
In terms of US dollars, the import of mobile phones has also recorded a sharp 138 percent increase, reaching $987 million in the first seven months of the current fiscal year. This is a substantial surge from the $415 million reported in the same period of the previous fiscal year. The experts suggest that the relaxation of trade restrictions by the State Bank of Pakistan (SBP), particularly regarding the opening of letters of credit (LCs), has contributed to the surge in mobile phone imports in dollar terms.
In recent years, Pakistan had implemented restrictions on the imports of luxury and non-essential items due to a scarcity of foreign exchange. However, the recent relaxation of these restrictions by the SBP is believed to be a response to the improved flow of dollars into the country.
The data for January 2024 further highlights the growing trend, with mobile phone imports reaching $195 million compared to $52 million in the same month of the previous year. This substantial increase of 275 percent in just one year underscores the growing reliance on imported mobile phones in the country.
While the surge in mobile phone imports may indicate a boost in consumer demand and technological adoption, it also raises concerns about the trade balance and the impact on foreign exchange reserves. The government and relevant authorities will need to carefully monitor and manage these trends to ensure sustainable economic growth.
The substantial increase in mobile phone imports aligns with global trends of increased technology adoption and reliance on digital devices. However, it also emphasizes the need for local manufacturing and initiatives to promote self-sufficiency in the technology sector to mitigate the impact of external economic factors on the country’s import bill.
As the fiscal year progresses, stakeholders and policymakers will closely monitor these trends to assess their implications on the economy and devise strategies to strike a balance between meeting consumer demands and ensuring a stable economic environment.
