In a striking development for Pakistan’s mobile phone market, local manufacturing and assembly of mobile phones have doubled from the previous month, as revealed by the Pakistan Telecommunication Authority (PTA).
Data for June 2024 indicates a significant leap, with local companies producing and assembling 4.26 million units. This marks a 13-fold increase year-on-year (YoY) and a two-fold increase month-on-month (MoM).
This sharp increase in local mobile phone production is attributed to a surge in pre-buying activities following the announcement of an 18 per cent Goods and Services Tax (GST) on all mobile phones for the fiscal year 2025. The tax hike prompted consumers to purchase mobile phones before the new rate took effect, driving the remarkable growth.
In the first half of 2024, local production reached a total of 17.34 million units, a three-fold increase compared to the same period last year. This growth is a direct result of import restrictions introduced in the previous year, which have bolstered local manufacturing.
Pakistan is now meeting 98 per cent of its mobile phone demand through local production, a significant increase from 96 per cent last month, and substantially higher than the 67 per cent average over the past five years and 47 per cent over the past eight years.
