Mobile phone imports to Pakistan were recorded at $64.504 million in July 2024, the opening month of the current financial year 2024-25. This is lower by 5.30% compared to imports made in the same month of last financial year, 2023-24, which were recorded at $68.113 million. The decline in imports should suggest persistent challenges and varied trends in the mobile phone selling business of the country.

Performance in Rupee Terms

The imports of mobile phone in July 2024 in local currency were Rs 17.957 billion, down 6.18% from Rs 19.140 billion recorded during July 2023 the previous year. This decline hints at currency fluctuations and possibly diminishing consumer demand or alterations in the supply chain.

Month-on-Month (MoM) Decline

Month-on-month figures show disastrous falls in the import of mobile phones. The country imported mobile phones worth $278.574 million in June 2024. In July 2024, it came down to $64.504 million, or by 76.84%. Consumers might indicate a drop in mobile phone imports, thus canceling out the decline in mobile phone imports. This might suggest that consumers are holding or possibly even improving their demand for other related telecom products and services.

Broader Telecom Imports

While mobile phone imports saw a downturn, the overall telecom imports during July 2024 experienced growth. The overall value of telecom imports in the country hit $102.587 million, a 13.25% rise from $90.588 million in July 2023. The drop in mobile phone imports might indicate that consumers are holding or possibly even improving their demand for other related telecom products and services, thus canceling out the decline in mobile phone imports.

Fiscal Year Overview

In the July of the recent fiscal year 2023-24, the imports of mobile in Pakistan surged by 23% to $1.898 billion, up from $570.071 million in the last fiscal year 2022-23. Imports in the month of July had declined against the high growth of the corresponding month in the previous fiscal year; this shows that the pace toward digitalization and tech-based living has picked up.

Local Manufacturing Trends

Local manufacturing and assembly of mobile handsets have shown substantial growth, reducing the reliance on imported devices. From January to June 2024, local plants produced 17.34 million handsets, compared to just 0.84 million commercially imported units. The figures for June alone show 4.26 million locally manufactured handsets versus 0.08 million imported units. This trend highlights the country’s shift towards self-reliance and the effectiveness of policies encouraging local production.

For the first five months of 2024, local manufacturing accounted for 13.08 million mobile handsets, while commercial imports lagged at 0.76 million units. The share of the domestic production has ever been on an increase, driven by favorable government policies and a provision of the growing ecosystem of local manufacturers. 

Smartphone vs. Feature Phone Market

There were 6.19 million feature phones, denoting 2G devices, and the remainder, at 11.15 million, denoted smartphones. According to the statistics from the Pakistan Telecommunication Authority, smartphones make 61 percent of all mobile devices on the country’s network, with 39 percent being 2G feature phones. Increased connectivity and growing consumer usage to access digital services have definitely brought about this rapid change.

Conclusion

Imports of cell phones into Pakistan decreased by 5.30% in July this year to stand at $64.504 million, from continuous headwinds and market trend changes. Even though there was a massive reduction on a month-on-month  basis, local manufacturing achieved mammoth growth and churned out 17.34 million handsets from January through June of 2024—thus, reducing dependence on imports. Domestic production gains further dominance due to friendly government policies, at a time when the local ecosystem of domestic manufacturers has been expanding. Sixty-one percent of smartphone-based devices are part of the Pakistani network, showing an increasing trend in their adoption along with increased connectivity and digital services for the masses.

Going closer to the local manufacturing of smartphones and increased adoption within smartphones is thereby good news for both the economic and digital situation of the country. Meanwhile, dealing with the persisting challenges and the economic uncertainties lies at the heart of these sustainability goals.

How might these be taken further by the government and other manufacturers towards increased advocacy for domestic production and uptake of smartphones, addressing the challenges that befall the mobile phone market?