Pakistan's Telecom Sector Witnesses Surge in Imports

In the period of July-March FY2024, Pakistan's telecom sector experienced a remarkable surge in imports, as reported in the Economic Survey 2023-24. The imports in this sector saw a significant increase of 117.9%, totaling $1.623 billion. This surge was primarily fueled by a substantial rise in mobile phone imports, which soared by 181.3% to $1.3 billion during the same period.

The removal of import restrictions and the appreciation of the rupee since September 2023 were identified as key factors contributing to the conducive environment for heightened import of mobile phones, as highlighted in the survey. Despite the surge in the telecom sector's imports, the overall import scenario in Pakistan witnessed a decline due to policy tightening and administrative measures. Total imports amounted to $39.9 billion in July-March FY2024, marking an 8.7% decrease from the previous year.

The decline in imports was observed across various categories, with all significant groups experiencing decreases. However, there was a notable 29.8% year-over-year increase in imports in March 2024, reaching $4.9 billion. Pakistan's import landscape remains concentrated, with countries like China, Saudi Arabia, UAE, and Indonesia contributing to around 50% of the total imports.

China notably increased its share of imports from 21% to 26% during July-March FY2024, while the USA's share decreased from 4% to 3% in the same period. It is important to note that Pakistan has Free Trade Agreements with countries like China, Sri Lanka, and Malaysia, which further influence its import dynamics.

The surge in imports in Pakistan's telecom sector, driven by a significant rise in mobile phone imports, reflects the evolving dynamics of the country's trade landscape. While the overall imports witnessed a decline, the telecom sector's performance stands out. The concentration of imports from key countries like China underscores the importance of trade agreements in shaping Pakistan's import patterns. This data provides valuable insights into the changing import trends in Pakistan's economy.