Pakistan Mobile Phone Imports Decline 13.6% in FY25

In recent months, Pakistan has witnessed a notable shift in its mobile phone import landscape. The country’s mobile phone imports have dropped significantly, with a reported decline of 13.6% during the first four months of the fiscal year 2024-25, which spans from July to October. This decrease amounts to $420.799 million, a stark contrast to the $469.969 million recorded in the same period of the previous fiscal year, 2023-24. In terms of local currency, this decline translates to Rs. 117.017 billion, reflecting a 13.62% drop from Rs. 135.468 billion last year.

Interestingly, while the overall trend shows a decline, October 2024 marked a significant month-on-month (MoM) increase in mobile phone imports. The imports surged by 69.89%, reaching $174.338 million compared to $102.618 million in September 2024. On a year-on-year (YoY) basis, October 2024 imports also saw a growth of 5.06%, compared to $165.941 million in October 2023. This fluctuation indicates that while the long-term trend is downward, there are moments of recovery that suggest a complex market dynamic.

Overall, telecom imports for the July-October 2024 period stood at $609.520 million, showing a slight increase of 0.44% compared to $606.833 million in the same period of 2023. The month of October alone saw telecom imports rise by 53.92%, reaching $235.349 million compared to $152.905 million in September 2024. Year-on-year, telecom imports grew by 13.27% from $207.786 million in October 2023.

This decline in mobile phone imports aligns with Pakistan's increasing focus on local mobile phone production. During the first nine months of 2024, local manufacturing and assembly plants produced an impressive 22.59 million mobile handsets, far exceeding the 1.17 million units imported commercially during the same timeframe. In September alone, local production reached 2.15 million handsets, while only 0.07 million units were imported.

Among the locally produced devices, 13.86 million were smartphones, and 8.73 million were 2G handsets. According to data from the Pakistan Telecommunication Authority (PTA), 64% of mobile devices currently on the network are smartphones, with the remaining 36% being 2G devices. This shift towards local manufacturing not only reduces dependency on imports but also helps to curb the country’s foreign exchange outflow.

The declining imports, coupled with rising local production, reflect a broader strategy aimed at addressing economic challenges and promoting self-reliance in the telecom sector. As Pakistan continues to navigate its economic landscape, the emphasis on local manufacturing could serve as a vital step towards enhancing the country’s economic stability and resilience. By fostering local production, Pakistan is not only working to reduce its import bills but also creating job opportunities and boosting its economy. This trend is a positive sign for the future, indicating that the country is taking significant strides towards self-sufficiency in the telecommunications industry.