Smartphone Penetration Reaches 71% While January Mobile Assembly Touches 1.69 Million Units

Pakistan mobile phone manufacturing has entered the year on a strong footing, with local plants assembling 1.69 million handsets in January alone. In comparison, only 0.47 million units were commercially imported during the same month. The data highlights the continued dominance of domestic assembly plants in meeting national demand while reinforcing the sector’s growing role in the country’s handset supply chain.

At the same time, rising import values during the current fiscal year suggest that while volume production remains local, the market is experiencing renewed appetite for higher-end devices.

January 2026: Local Assembly Maintains Lead

Out of the 1.69 million mobile phones assembled locally in January 2026, approximately 0.92 million were smartphones, while 0.77 million were 2G feature phones. The figures show that smartphones now account for the larger share of monthly production, reflecting Pakistan’s gradual digital transition.

Commercial imports, meanwhile, stood at 0.47 million units, reinforcing the fact that local plants are supplying the bulk of devices entering the market.

2025 Full-Year Performance Crosses 30 Million Units

During the full calendar year 2025 (January–December), local manufacturing and assembly plants produced 30.21 million mobile handsets. In contrast, only 2.37 million units were commercially imported over the same period.

This means more than 90 percent of total handsets were assembled domestically, underscoring the impact of localization policies and regulatory incentives introduced over the past few years. Pakistan’s handset ecosystem has shifted from import-heavy dependency to volume-based domestic assembly, particularly in entry-level and mid-range segments.

Smartphone Penetration Reaches 71%

According to data from the Pakistan Telecommunication Authority, 71 percent of devices active on Pakistan’s mobile networks are smartphones, while 29 percent remain 2G devices.

The split reflects a market in transition. While smartphone adoption continues to rise, a significant portion of the population still relies on basic feature phones due to affordability concerns and rural connectivity limitations. This explains why assembly data continues to show strong 2G production alongside smartphones.

Imports Surge 31% in FY2025-26

Despite the dominance of local assembly in unit terms, Pakistan’s mobile phone import bill has grown sharply during the current fiscal year. Between July and January FY2025-26, mobile phone imports totalled $1.139 billion compared to $867.685 million during the same period last year, marking a growth of over 31 percent.

In rupee terms, imports reached Rs 321.137 billion during July–January FY2025-26, up from Rs 241.330 billion in the corresponding period of last year, an increase of more than 33 percent.

This rise suggests that while lower- and mid-tier devices are increasingly assembled locally, higher-end smartphones continue to be imported in finished form, driving up the overall dollar value.

Month-on-Month and Year-on-Year Growth in January

On a month-on-month basis, mobile phone imports grew by 12.60 percent in January 2026, reaching $179.380 million compared to $159.304 million in December 2025. On a year-on-year basis, imports increased by 33.62 percent compared to $134.243 million recorded in January 2025.

The steady upward trend indicates improving market momentum and possibly pent-up consumer demand following earlier import restrictions and economic uncertainty.

A Look Back: Imports Declined in FY2024-25

The current surge contrasts with fiscal year 2024-25, when Pakistan imported mobile phones worth $1.494 billion, a 21.31 percent decline from $1.898 billion recorded in FY2023-24.

In rupee terms, imports during FY2024-25 stood at Rs 417.351 billion compared to Rs 535.690 billion in the previous fiscal year, reflecting a 22.09 percent decrease. That decline was largely attributed to foreign exchange constraints, regulatory tightening, and reduced consumer purchasing power.

What the Data Really Shows

Pakistan mobile phone manufacturing data currently presents a dual narrative. On one hand, domestic assembly has achieved scale, with over 30 million units produced in 2025 alone. On the other hand, the rising import bill indicates that high-value devices, particularly premium smartphones, continue to depend on foreign supply chains.

In volume terms, localization is a success story. In value terms, however, the country remains exposed to foreign exchange outflows driven by premium segment demand.

Going forward, deeper localization, including component manufacturing and higher-tier smartphone assembly, could determine whether Pakistan can reduce its import dependency beyond basic device assembly.

For now, January 2026’s figures confirm that while local production remains strong, the market is entering a renewed growth cycle marked by increasing import values alongside sustained domestic output.