In 2023, Pakistan’s local manufacturing plants faced some challenges in producing mobile phones due to restrictions on importing parts. Despite these obstacles, the number of mobile phones brought in from other countries increased, according to official information. While local factories made or put together 21.28 million mobile phones in 2023, compared to 21.94 million in 2022 and 24.66 million in 2021, the number of imported phones rose from 1.53 million in 2022 to 1.58 million in 2023.
Out of the 21.28 million mobile phones produced locally, 13 million were older 2G phones, while 8.28 million were smartphones. This data, sourced from the Pakistan Telecommunication Authority (PTA), reveals that 59 percent of mobile devices used in Pakistan are smartphones, with the remaining 41 percent being older 2G phones.
Interestingly, Pakistan’s spending on importing mobile phones saw a significant increase during the first half of the fiscal year 2023-24. The country spent a whopping $792.612 million on importing mobile phones from July to December, marking a staggering 118.45 percent increase compared to the same period last year, which saw an expenditure of $362.841 million.
In December 2023 alone, the amount spent on importing mobile phones witnessed a 20.16 percent increase compared to November 2023, reaching $176.093 million. Comparing December 2023 to December 2022, there was an astounding 143.59 percent surge in the amount spent on importing mobile phones.
Overall, the expenditure on importing telecommunications equipment into Pakistan saw a significant rise of 78.64 percent from July to December 2023, compared to the same period the previous year. This growth indicates a growing demand for mobile phones in the country, despite the challenges faced by local manufacturing plants.
While the decrease in local production may be attributed to the restrictions on importing parts, the increase in imported phones suggests that the demand for mobile phones is being met through alternative means. The rise in smartphone usage, accounting for 59 percent of mobile devices in Pakistan, indicates a shift towards more advanced technology. However, the presence of older 2G phones, making up 41 percent of mobile devices, highlights the need to cater to a diverse market with varying needs and preferences.
Pakistan’s mobile phone industry continues to evolve and adapt to changing circumstances. The challenges faced by local manufacturing plants serve as a reminder of the importance of a resilient supply chain and the need for investments in domestic production capabilities. As the demand for mobile phones in Pakistan continues to grow, it will be interesting to see how the industry responds and adjusts to meet the evolving needs of consumers.
In conclusion, despite the obstacles faced by local manufacturing plants, Pakistan’s mobile phone industry remains resilient. The production of 21.28 million mobile handsets in 2023, coupled with the increase in imported phones, showcases the country’s growing appetite for mobile technology. As the industry continues to evolve, stakeholders must collaborate and invest in sustainable solutions that ensure a steady supply of mobile phones to meet the demands of the Pakistani market.