Tag: mobile imports

  • Pakistan assembles 13.8 million mobile phones in five months amid challenges

    Pakistan assembles 13.8 million mobile phones in five months amid challenges

    In a significant achievement, local mobile assembly and manufacturers in Pakistan have collectively produced 13.8 million mobile phones during the first five months of the ongoing fiscal year (January-May 2024), according to recent data released by the Pakistan Telecommunication Authority (PTA).

    While the country has made strides in local production, commercial imports of mobile phones have dwindled to a mere 0.75 million units during the same period.

    The PTA’s data breakdown reveals that out of the total 13.8 million devices produced, 8.1 million were smartphones, while the remaining 4.98 million were 2G devices.

    Among the brands, Infinix led the production charts with 1.46 million units manufactured from January to April 2024. Itel and VGO TEL followed, with outputs of 1.29 million and 1.14 million units, respectively.

    This growth in local production comes despite a declining trend since 2022, attributed to the country’s economic depression and rising interest rates, which have constrained the local industry.

    Moreover, commercial imports have seen a sharp decline from 24.66 million units in 2021 to just 1.58 million units in 2023, indicating a heavier reliance on domestic production to meet local demand.

    The significant drop in imports is largely due to the central bank’s import restrictions aimed at curbing the trade deficit and reducing the outflow of foreign currency.

    With the expanding reach of internet services, the proportion of smartphone users on Pakistan’s network has risen to 61 per cent, up from 59 per cent in 2023 and 56 per cent in 2022. Conversely, the use of 2G devices has decreased to 39 per cent, compared to 41 per cent in 2023 and 44 per cent in 2022.

    The recently announced budget for the upcoming fiscal year (FY25) sets a standard rate of 18 per cent on mobile phones, while devices valued at more than $500 will continue to be taxed at the existing rate of 25 per cent.

    Additionally, the government has proposed increasing the withholding tax rate from 15 per cent to 75 per cent for individuals listed in the income tax general order for non-filing of returns despite receiving notices.

    These measures reflect the government’s efforts to bolster local production and reduce dependency on imports, thereby supporting the domestic mobile phone manufacturing industry.

  • Pakistan’s mobile phone imports soar by 181% amid local manufacturing challenges

    Pakistan’s mobile phone imports soar by 181% amid local manufacturing challenges

    Pakistan’s mobile phone imports surged by 181.26 per cent during the first nine months (July-March) of the fiscal year 2023-24, reaching $1.301 billion, according to the Pakistan Bureau of Statistics (PBS). 

    This significant increase is in stark contrast to the $462.700 million recorded during the same period in the previous fiscal year.

    Despite this year-long surge, March 2024 saw a slight decline in mobile phone imports on a month-on-month (MoM) basis, with imports totaling $153.051 million, a 4.87 per cent decrease from February 2024’s $160.90 million.

    However, on a year-on-year (YoY) basis, mobile phone imports experienced a remarkable 930.92 per cent growth in March 2024, as compared to $14.846 million in March 2023.

    The overall telecom imports also reflected similar trends. During the first nine months of the fiscal year, total telecom imports reached $1.623 billion, representing a 117.90 per cent increase from $744.971 million during the same period of the previous fiscal year.

    On a YoY basis, telecom imports rose by 422.58 per cent, totaling $189.042 million in March 2024 compared to $36.175 million in March 2023. However, on a MoM basis, telecom imports saw a slight decline of 1.13 per cent in March 2024, down from $191.201 million in February 2024.

    Meanwhile, local manufacturing and assembling of mobile handsets continued to be an area of focus. During the first two months (January-February) of the calendar year 2024, local plants manufactured or assembled 6.1 million mobile handsets, which included 2.78 million 2G and 3.35 million smartphones. 

    This was in stark contrast to the 0.3 million units that were imported commercially during the same period.

    In February 2024, local plants manufactured or assembled 3.83 million mobile handsets, significantly higher than the 0.06 million units imported commercially. 

    Notably, the Pakistan Telecommunication Authority (PTA) reported that 60 per cent of mobile devices on the Pakistan network are smartphones, while the remaining 40 per cent are 2G.

    Despite robust local manufacturing efforts, official data indicated that local manufacturing and assembling of mobile handsets declined by around four per cent during the calendar year 2023. 

    This decline is attributed to challenges in importing mobile phone accessories due to restrictions on the opening of letters of credit (LCs). 

    Nonetheless, commercial imports of mobile handsets increased during this period, suggesting a shift in strategy to meet the demand for mobile phones in the face of supply chain disruptions.

    The data presents a complex picture of Pakistan’s mobile phone industry, with significant growth in imports and shifts in local manufacturing dynamics. 

    The continued growth in imports highlights the demand for mobile technology, while local manufacturing faces challenges that could shape the future of the telecom sector.