Islamabad, October 20, 2024 – Pakistan’s mobile phone imports fell sharply by 19% in the first quarter of fiscal year 2024-25, reflecting a significant contraction in consumer demand and economic conditions. According to data released by the Pakistan Bureau of Statistics (PBS), the country imported mobile phones worth $246.472 million between July and September 2024, down from $304.029 million during the corresponding period of the previous fiscal year.
This decline in mobile phone imports follows an overall trend from fiscal year 2023-24, when the total imports for mobile devices reached $1.898 billion, a stark contrast to the $570.071 million imported during fiscal year 2022-23. The drop in import value is even more pronounced in rupee terms, with mobile phone imports for the first quarter of FY25 amounting to Rs68.612 billion—a 22.86% decline compared to Rs88.945 billion in the same period last year.
Despite this downturn, there was a marked month-on-month (MoM) increase in mobile phone imports in September 2024. Imports surged by 29.32%, rising to $102.629 million from $79.360 million in August 2024. However, on a year-on-year (YoY) basis, the figures still represent a 17.62% decrease when compared to the $124.576 million recorded in September 2023.
Telecom Sector Trends
The broader telecommunications sector also experienced a slowdown in import activity. Total telecom imports amounted to $374.410 million during the first quarter of FY25, a 6.17% decline from the $399.048 million recorded in the same period of FY24. Telecom imports, similar to mobile phone imports, saw a MoM increase in September 2024, rising 28.92% to $153.144 million compared to $118.787 million in August 2024. However, the YoY comparison revealed a 3.53% decline from the $158.755 million in September 2023.
Local Manufacturing Surge
While mobile phone imports have contracted, domestic mobile phone manufacturing has seen a dramatic rise. From January to August 2024, local manufacturing and assembling units produced 20.44 million mobile handsets, compared to just 1.1 million units imported commercially. August alone saw the production of 1.49 million locally manufactured devices, against a mere 0.1 million imported commercially.
Of the 20.44 million locally assembled mobile handsets, 7.71 million were 2G devices, while 12.73 million were smartphones, reflecting Pakistan’s growing shift toward smartphone adoption. According to the Pakistan Telecommunication Authority (PTA), 62% of mobile devices operating on Pakistan’s networks are now smartphones, while 38% are 2G handsets.
This trend indicates a strategic pivot towards local production, reducing reliance on imports while simultaneously supporting the local tech industry amidst economic challenges.