Pakistan Assembles 7.21 Million Mobile Phones in Q1 2025
Pakistanโs local mobile phone manufacturing and assembly sector continues to show resilience and growth, producing 7.21 million handsets in the first quarter of 2025 (JanuaryโMarch), significantly outpacing commercial imports, which stood at just 0.54 million units during the same period. The latest data released by the Pakistan Telecommunication Authority (PTA) and Pakistan Bureau of Statistics (PBS) reflects a strategic shift toward domestic production as a means to curb import dependency and promote technological self-reliance.
March 2025 Snapshot: Local Production Surges Ahead
In March alone, 2.33 million mobile phones were manufactured or assembled locally, compared to a mere 0.17 million units imported commercially. This robust performance follows a strong trend set in 2024, when local facilities produced 31.38 million handsets, while only 1.71 million units were brought in through commercial imports.
Out of the 7.21 million devices manufactured during Q1 2025, 3.12 million were smartphones and 4.09 million were 2G phones, showing continued demand for both entry-level and advanced devices in Pakistanโs diverse consumer market.
According to PTA data, 67% of mobile devices currently active on Pakistanโs networks are smartphones, while 33% are 2G feature phones. This usage pattern reflects both a growing appetite for digital services and the lingering digital divide in rural and low-income segments.
Mobile Phone Imports: Mixed Signals in FY25
Despite local production gains, mobile phone imports remain a significant contributor to the overall market but have seen a downward trend. Pakistan imported mobile phones worth $1 billion in the first eight months (JulyโFebruary) of the current fiscal year 2024โ25. This marks a 12.89% year-on-year decline compared to $1.148 billion during the same period last fiscal year.
In rupee terms, imports amounted to Rs278.37 billion, also registering a 14.8% decline from Rs326.73 billion in the same period of FY 2023โ24.
However, on a full-year basis, FY 2023โ24 had seen a dramatic spike in imports, totaling $1.898 billion, up from just $570 million in FY 2022โ23. This surge was largely due to the lifting of import restrictions and an adjustment period as manufacturers ramped up local capacity.
On a Month-on-Month (MoM) basis, mobile phone imports declined slightly by 1.21% in February 2025, standing at $132.62 million, down from $134.24 million in January. On a Year-on-Year (YoY) comparison, imports fell by 17.57%, dropping from $160.89 million in February 2024.
Pakistan mobile phone manufacturing: What This Means for Pakistanโs Tech Economy?
The consistent increase in Pakistan mobile phone manufacturing production is a testament to Pakistanโs maturing mobile ecosystem. The governmentโs Mobile Device Manufacturing (MDM) policy, combined with investment incentives for local assemblers, has played a critical role in boosting domestic output. Major international and local players have set up manufacturing units, creating jobs and reducing the outflow of foreign exchange.
However, the sustained import of high-end smartphones indicates a gap in domestic manufacturing capabilities, especially in producing premium devices that meet international standards. This presents both a challenge and an opportunity for the sector.
As Pakistan continues to digitalize its economy, closing the gap between local and imported high-tech devices will be crucial. Bridging this divide can ensure affordability, support the โMake in Pakistanโ initiative, and help the country become a key player in the regional mobile manufacturing hub.
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