Pakistan’s mobile phone industry, local manufacturing and assembly plants have demonstrated remarkable prowess by producing 6.1 million mobile handsets in the first two months of 2024, showcasing a stark contrast to the meager 0.3 million units imported commercially during the same period.
Recent data published by the Pakistan Telecommunication Authority (PTA) reveals a substantial increase in the output of locally manufactured mobile phones. During January-February 2024, the local plants churned out a whopping 6.1 million units, indicating a surge in domestic production capabilities.
Diving deeper into the numbers, it’s revealed that out of the total 6.1 million devices manufactured, 3.35 million were sophisticated smartphones, while the remaining 2.78 million were conventional 2G devices. This trend aligns with the evolving market dynamics, as highlighted by the PTA, indicating that 60 percent of mobile devices on the Pakistani network are smartphones, with the rest being 2G devices.
Infinix emerges as the frontrunner in this manufacturing spree, with an impressive production of 0.85 million units during January-February 2024. This accomplishment follows its leading performance in 2023, where it rolled out 2.73 million devices. VGO TEL and Itel secure the second and third positions, respectively, with outputs of 0.82 million and 0.77 million units during the same review period.
Despite the commendable surge in production, the local mobile industry has been grappling with economic headwinds since 2022. Factors such as economic depression and escalating interest rates have posed challenges for the local industry, contributing to a declining trend in production.
In 2021, the PTA reported a robust production figure of 24.66 million units, which witnessed a decline to 21.28 million units in 2023, marking a significant 13.71% drop. This reduction can be attributed to hurdles in importing essential accessories, exacerbated by restrictions on opening Letters of Credit (LCs).
While local production faced a slight downturn, the scenario for commercial imports witnessed a contrasting trend. Despite challenges, commercial imports of mobile handsets surged from 1.53 million in 2022 to 1.58 million in 2023, indicating resilience in the face of adversities.
Pakistan’s import dynamics also witnessed notable fluctuations, with the country importing mobile phones worth $1.148 billion during the initial eight months of the fiscal year 2023-24. This marked an impressive 156.43 percent increase compared to the corresponding period of the previous fiscal year.
However, the month-on-month import data for February 2024 reflected a 17.46 percent decrease, amounting to $160.899 million, down from January’s $194.928 million. Despite this decline, year-on-year data for February showcased an astounding 386.78 percent growth compared to the same period in 2023.
