ISLAMABAD: Pakistan’s mobile phone manufacturing sector saw a sharp decline in October, with local production plunging 34 percent year-on-year after the government imposed an 18 percent sales tax on mobile phones.
According to data from the Pakistan Telecommunication Authority (PTA), local assembly fell to 2.33 million units in October, down from 3.53 million in the same month last year. Production also slipped 23 percent compared to September, as manufacturers scaled back output in response to weakening consumer demand.
Tax hike dampens demand
The downturn comes despite overall growth in local mobile phone production over recent years, driven by the Device Identification, Registration and Blocking System (DIRBS), which curbs the use of non-duty-paid imported phones. However, the latest tax measure has begun to dampen consumer appetite for new devices.
According to Pakistan Mobile Phone Manufacturers Association (PMPMA) Deputy Vice-Chairman Zeeshan Mianoor, production had initially risen in earlier months as companies built up inventory ahead of the 2025–26 budget announcement. But with higher taxes driving up retail prices, sales have slowed sharply.
“Distributors and retailers already have excess inventory, while demand has declined due to the 18 percent sales tax,” he said, adding that manufacturers have reduced production to avoid further stockpiles.
97% of phones sold are locally made
Local production for the first 10 months of 2025 is expected to reach 25.11 million units, with smartphones accounting for 13.2 million units (53 percent) and feature phones making up 11.9 million units (47 percent). More than 97 percent of mobile phones sold in Pakistan are now locally assembled.
Between January and October, commercial importers and returning travelers brought in 675,177 mobile phones. iPhones led the category with 238,712 units, followed by 208,940 Nokia feature phones. In comparison, 154,836 iPhones were imported during all of 2024. Industry officials note that while many Pakistanis view iPhones as a status symbol — often preferring older models — newer models are frequently bought as gifts.
Local manufacturing surged to 32.80 million units in 2024, with only 792,208 phones imported that year.
Infinix leads local production in 2025, followed by Vgotel and Vivo
In terms of market share, Infinix topped locally produced brands from January to October 2025 with 2.90 million units. It was followed by Vgotel (2.74 million), Vivo (2.36 million), Itel (2.13 million), Tecno (1.49 million), Xiaomi (1.42 million), and Samsung (1.32 million). Gfive remained the country’s leading feature-phone producer with 1.17 million units during the same period.
