ISLAMABAD: Pakistan’s local smartphone manufacturing industry is facing mounting pressure as imports of fully built mobile phones, particularly used devices, surge, according to the Pakistan Telecommunication Authority (PTA).
Pakistan imported 105,121 used smartphones in September, valued at approximately $14.03 million, while imports of 23,616 new fully built mobile phones were worth around $19.40 million during the same month. Combined, imports of new and used fully built smartphones reached 128,737 units, with a total value of approximately $33.43 million.
Used smartphones accounted for nearly 82% of all fully built imported phones by volume, underscoring the growing reliance on second-hand devices amid weakening consumer purchasing power.
At the same time, local smartphone production fell to 628,030 units in September, down significantly from the monthly output of around 1.1 million to 1.2 million units previously reported by industry representatives.
Imported fully built smartphones were equivalent to about 20.5% of locally manufactured smartphone output during the month. When both imported and locally produced smartphones are combined, imported devices represented roughly 17% of the total volume.
Feature-phone production remains stable
Production of feature phones remained comparatively stable, with around 1.053 million units manufactured locally in September. The resilience of feature-phone production suggests continued demand for lower-cost handsets as consumers face increasing financial pressures.
Industry representatives have attributed the decline in local smartphone manufacturing to higher taxes on mobile phones, weaker consumer purchasing power and the rising inflow of used imported devices.
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Aamir Allahwala, Senior Vice President of the Pakistan Mobile Phone Manufacturers Association, expressed concern over the trend, saying imports of fully built and used mobile phones were increasing while domestic production was declining.
He warned that continued pressure on local manufacturers could make some production units commercially unviable and potentially lead to factory closures, putting a large number of jobs in the mobile phone manufacturing sector at risk.
Industry stakeholders have also raised concerns that greater reliance on fully built imported phones could put additional pressure on Pakistan’s foreign exchange resources while weakening domestic manufacturing.
They have urged the government to review the taxation and import framework for mobile phones, arguing that measures are needed to support local production, safeguard employment and reduce dependence on imported handsets.
