Pakistan Set to Expand Local Manufacturing to Include Tablets and IoT Devices

The Pakistani government is reportedly working to revamp its Mobile Device Manufacturing Policy in a strategic move to uplift its manufacturing sector, The new policy aims to set new localization targets, introduce export conditions, and expand its scope to include Tablets, Internet of Things (IoT) devices, Point-of-Sale (POS) systems, and Radio Frequency Identification (RFID) technology. The initiative is a collaborative effort by the Pakistan Telecommunication Authority (PTA), the Engineering Development Board, and the Ministry of Industries and Production.

Boosting Local Manufacturing

Pakistanโ€™s local mobile manufacturing has experienced remarkable growth in recent years. Local manufacturing and assembly plants produced 28.43 million mobile handsets during the first 11 months of 2024. Amongst the locally produced devices, 17.01 million were smartphones, while 11.42 million were 2G handsets. These figures contrast the 1.49 million handsets imported during the same period.ย  According to PTA data, 65% of devices on Pakistani networks are now smartphones.

The Mobile Device Manufacturing Policy, introduced in 2021, was a turning point for the industry. Building on the success of the Device Identification Registration and Blocking System (DIRBS) implemented in 2019, the policy encouraged local production and reduced reliance on imports. The results are evident, with 94% of the 31.4 million devices manufactured or imported in FY 2023-24 being manufactured locally. This shift has also created approximately 60,000 jobs, significantly boosting the economy.

Potential to Become a Global Player

Pakistan is leveraging its low-cost labor and incentivized export policies to position itself as a global exporter of mobile devices. PTA has so far granted manufacturing authorizations to 39 companies, including major brands like Samsung, Infinix, Tecno, Vivo, and Oppo. By adhering to international standards, the local industry is building consumer trust in the quality and affordability of its products.

Despite economic hurdles and the impacts of the COVID-19 pandemic, the mobile device sector has shown resilience and growth. The governmentโ€™s focus on diversification, particularly the inclusion of tablets and IoT devices, signals its intent to create a competitive and innovative ecosystem.

Moreover, Pakistan imported mobile phones worth $570.167 million during the first five months of FY 2024-25, showing a 7.52% decline compared to the same period in the previous fiscal year. However, a month-on-month comparison revealed a 14.32% increase in November 2024 imports, indicating a mixed trend.

Our Perspective

Pakistanโ€™s journey from implementing DIRBS to establishing a robust local manufacturing sector underscores the power of effective policymaking and regulatory support. However, to fully realize the potential of this industry, consistent policies, reliable infrastructure, and a conducive export environment are essential.

The governmentโ€™s vision to expand into tablets and IoT devices is commendable, however, its success hinges on addressing structural issues and ensuring long-term stability. The countryโ€™s heavy reliance on imports for mobile phone parts highlights the need for infrastructure development. Moreover, economic instability and fluctuating market conditions could pose risks to the ambitious localization targets. By addressing these issues, Pakistan could emerge as a significant player in the global tech products market, promoting innovation and economic growth.

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