Karachi, April 19, 2025 – Pakistan has spent a substantial $1.13 billion on the import of mobile phones during the first nine months (July–March) of the current fiscal year, despite ongoing efforts to promote domestic assembly and reduce foreign exchange pressure.
This heavy expenditure on phones raises concerns, particularly at a time when the country is grappling with dwindling foreign exchange reserves. Although the government has extended significant tax and duty concessions to encourage local manufacturing of mobile phones, imports still represent a major outflow of precious foreign currency.
According to data released by the Pakistan Bureau of Statistics (PBS), imports of mobile phones declined by 13.10% during July–March FY2024–25 compared to the same period last year. Imports totaled $1.13 billion during the current period, down from $1.30 billion a year ago—an indication that policy measures may be starting to impact market dynamics, albeit slowly.
The local mobile assembly industry, however, is showing robust growth. According to Topline Securities, citing data from the Pakistan Telecommunication Authority (PTA), domestic manufacturers produced a record 31.4 million phones in 2024, marking a remarkable 47% year-on-year growth. This surge is largely attributed to government policies that imposed restrictions on imports and incentivized domestic production.
To further support local manufacturers, the Federal Board of Revenue (FBR) granted a massive Rs33 billion in sales tax exemptions in 2024. This relief was provided under the Ninth Schedule of the Sales Tax Act, 1990, allowing mobile phone manufacturers to sell their products without bearing standard sales tax obligations. The exemption has become one of the most significant tax breaks in Pakistan’s tech sector.
Despite these positive strides, economic experts stress the urgent need for Pakistan to further reduce its reliance on imported phones to preserve foreign reserves and strengthen the balance of payments. The transition toward a self-sufficient mobile industry will not only curb imports but also create employment opportunities and enhance technological capability within the country.