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). Among these, 8.1 million were smartphones, while 4.98 million were simpler 2G devices with basic features.
Infinix led the production effort, manufacturing 1.46 million units. Other companies like Itel and VGO TEL also contributed significantly to the production totals.
Despite these impressive production numbers, the industry has faced challenges. Economic difficulties and high-interest rates have caused a decline in production since 2022. Furthermore, restrictions on imports have significantly reduced the number of phones brought in for commercial purposes. In 2023, only 1.58 million phones were commercially imported into Pakistan.
On a positive note, smartphone usage in Pakistan has increased considerably, with 61% of the population 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, which is even higher for more expensive devices.
These developments illustrate the mixed state of the mobile phone industry in Pakistan. While local production remains 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 are likely to impact both manufacturers and consumers, particularly those interested in higher-end smartphones.
