In the first ten months of FY24, Pakistan’s imports of mobile phones increased by 209% to $1.462 billion from $473.287 million during the same period the previous year.
April 2024 had a 1,424% YoY rise in imports from April 2023 and a 5.44% MoM increase to $161.393 million.
Imports totaled Rs414.276 billion in rupees, a 279% increase over Rs109.158 billion the previous year.
Telecom imports as a whole increased by 135% to $1.834 billion. In the first two months of 2024, 6.1 million handsets were produced locally, reflecting an increase in manufacturing.
Mobile phone imports increased significantly in spite of import difficulties.
This pattern is probably going to continue, which makes Pakistan’s mobile sector a crucial component of the nation’s ongoing digital transformation.
Read more: Pakistan Made Around 9 Million Mobile Phones Worth $1.5 Billion In Two Years
The impressive rise in Pakistani mobile phone imports is caused by a number of factors:
- Growing Urbanisation and Demographic Change:
More individuals are migrating to metropolitan regions as Pakistan’s population continues to rise. Mobile phone demand, particularly for smartphones, is driven by this shift in demographics.
- Reasonably priced devices:
Since they are more widely available, a larger portion of the population can now afford smartphones. Options that are affordable suit a range of financial situations.
- Digitization:
With a rise in internet usage and the uptake of digital services, Pakistan is experiencing a digital transformation. Throughout this process, mobile phones are essential.
- Economic Recovery:
Pakistan’s economy is beginning to revive despite obstacles. Consumers are eager to spend in mobile technology as long as their disposable income increases.
- Telecom Infrastructure:
The demand for newer gadgets is driven by advancements in telecom infrastructure, such as 4G and 5G networks, which promote mobile phone usage.
- Boom in E-Commerce:
Mobile phone purchases and other online buying have increased due to the expansion of e-commerce platforms.
The increase in imports of mobile phones may benefit Pakistani local assembly and manufacturing:
- A rise in component demand:
The need for parts (such screens, batteries, and processors) may increase as more phones are imported. Local producers that supply these parts might profit from this.
- Employment Creation:
The growth or establishment of assembly factories may result in the creation of jobs for local labourers.
- Technology Transfer:
Working with global brands may result in the transfer of technologies, enhancing the capacity of regional manufacturers.
All of these elements work together to drive up mobile phone imports, which makes Pakistan a thriving market for telecom equipment.
While some areas of local manufacturing may benefit from increased imports, governments must find a balance to maintain long-term competitiveness and sustainable growth.