Pakistan’s local smartphone manufacturing industry is facing severe pressure and heading toward decline due to a sharp increase in the imports of new and used mobile phones.
Local production fell to nearly half of its normal level during September, raising serious concerns over factory closures and large-scale unemployment.
Staggering Import Figures
According to media reports, data from the Pakistan Telecommunication Authority (PTA) shows a sharp increase in imports of completely built-up (CBU) mobile phones, particularly used smartphones.
According to the data, Pakistan imported 105,121 used smartphones worth $14.03 million during September.
During the same month, another 23,616 new and completely built-up mobile phones worth approximately $19.40 million were imported.
Overall, the volume of new and used imported smartphones reached 128,737 units in a single month, with a total value of approximately $33.43 million.
Alarming Decline in Local Production
According to the report, used smartphones accounted for around 82% of completely built-up phone imports, indicating a significant shift and increase in demand for imported second-hand devices.
In contrast, local smartphone production fell to just 628,030 units in September. Industry representatives said monthly local smartphone manufacturing had previously stood at around 1.1 million to 1.2 million units, indicating a major and rapid decline in domestic production.
According to the data, the volume of completely built-up imported smartphones was approximately 20.5% of the volume of smartphones manufactured locally.
When locally produced and imported smartphones are combined, imported devices accounted for around 17% of the overall volume.
Feature Phone Production Remains Stable
Unlike smartphones, feature phone production remained relatively stable. Around 1.053 million feature phones were manufactured locally in September.
The trend clearly indicates that demand for lower-priced handsets remains strong among consumers amid financial pressures and inflation.
Industry Concerns and Warning of Unemployment
Industry sources said high taxes on smartphones, declining consumer purchasing power and the growing influx of imported used phones are putting local manufacturers under severe pressure.
Senior Vice President of the Pakistan Mobile Phone Manufacturers Association, Aamir Allawala, also expressed deep concern over the trend. He said imports of new and used mobile phones are increasing while local production continues to decline.
He warned that if local manufacturing units become commercially unviable and factories are forced to shut down, thousands of workers associated with the mobile phone manufacturing sector could lose their jobs.
Industry Calls for Immediate Government Action
Industry stakeholders warned that growing reliance on completely built-up imported phones is not only causing potentially irreparable damage to domestic manufacturing and employment but is also placing an additional burden on Pakistan’s foreign exchange resources.
Industry representatives urged the government to immediately review the taxation and import framework for mobile phones.
They called for urgent practical measures to protect the local industry, safeguard jobs and reduce the country’s growing dependence on imported devices.
