Pakistan’s domestic mobile phone assembly industry has surged to unprecedented levels, with local manufacturers producing 31.4 million units in 2024 — a 47% year-over-year increase — according to a new report by Topline Securities analyst Sunny Kumar.
The findings, based on data from the Pakistan Telecommunication Authority (PTA), reveal how government import restrictions and tax policies have reshaped the market, reducing reliance on foreign devices and creating a booming homegrown manufacturing sector.
December 2024 marked a milestone, with local assembly hitting 2.95 million units — a 28% month-over-month jump. The fourth quarter saw 8.8 million units produced, up 67% from the previous quarter’s 5.3 million. This growth builds on a broader upward trend: compared to 2022, production has climbed 43% annually, driven by economic recovery, tax advantages for locally assembled phones, and population growth.
Key drivers of this recovery include import restrictions. Imposed in 2023 to curb dollar outflow, these policies forced consumers and retailers to turn to locally assembled devices.
Then there was the tax policy meant to incentivize domestic phones. Imported phones face significantly higher tariffs (up to 30%) compared to locally assembled ones (10–15%), creating a pricing advantage for domestic products.
But perhaps most important is the economic recovery. Improved macroeconomic stability boosted consumer spending, particularly in urban centers. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
