Pakistan’s Mobile Phone Imports Drop by 12% in First Seven Months of FY 2024-25

Pakistan has experienced a significant decline in mobile phone imports during the first seven months (July-January) of FY 2024-25, as per the latest data from the Pakistan Bureau of Statistics (PBS). The country imported mobile phones worth $868.551 million, reflecting a 12.04% decrease compared to $987.447 million during the same period in FY 2023-24.

In terms of Pakistani Rupees, mobile phone imports stood at Rs 241.571 billion, registering a 14.28% decline from Rs 281.814 billion recorded in the corresponding period of the last fiscal year.

Pakistan’s Mobile Phone Imports Drop by 12% in First Seven Months of FY 2024-25

The decrease in mobile imports is part of a larger trend that has been observed over the past year. In the entire fiscal year 2023-24, Pakistan imported mobile phones worth $1.898 billion, a sharp increase from $570.071 million in FY 2022-23. However, in the ongoing fiscal year, imports have once again declined, possibly due to economic constraints, higher taxes, and a shift towards locally manufactured smartphones.

In January 2025, mobile phone imports in Pakistan amounted to $135.127 million, reflecting a 17.23% decline on a Month-on-Month (MoM) basis compared to $163.257 million in December 2024.

On a Year-on-Year (YoY) basis, the decline is even steeper, with imports dropping by 30.66% compared to $194.866 million in January 2024.

This substantial decline suggests that consumer demand for imported smartphones has slowed, likely due to economic conditions, local production efforts, and a weakening exchange rate affecting purchasing power.

The downward trend is not limited to just mobile phones. Total telecom imports into Pakistan stood at $1.191 billion during July-January 2024-25, marking a 4.18% decline compared to $1.243 billion in the corresponding period of FY 2023-24.

On an MoM basis, overall telecom imports decreased by 4.30% in January 2025, reaching $193.998 million, compared to $202.719 million in December 2024.

On a YoY basis, telecom imports fell by 16.58%, dropping from $232.568 million in January 2024.

Factors Contributing to the Decline

Several key factors could be responsible for the declining mobile phone and telecom imports in Pakistan:

1. Higher Taxes and Import Duties – The government has increased taxes and duties on imported mobile phones, making them more expensive and discouraging imports.
2. Economic Challenges – Inflation and currency devaluation have reduced consumer purchasing power, leading to lower demand for expensive imported smartphones.
3. Growth of Local Manufacturing – Pakistan has been encouraging local smartphone assembly and manufacturing, reducing reliance on imports. Brands like Infinix, Tecno, and Vivo have expanded local production, offering budget-friendly options.
4. Regulatory Measures – Government policies aimed at reducing the trade deficit have also played a role in limiting unnecessary imports, including mobile phones and telecom equipment.
5. Consumer Shift Towards Used and Locally Assembled Phones – Due to rising costs, more consumers are opting for refurbished or second-hand smartphones and locally assembled models instead of expensive imported devices.

Impact on Prices and Market Trends

The decline in mobile imports could have both positive and negative impacts on the Pakistani market:

• Higher Prices for Imported Phones: As the supply of imported smartphones decreases, their prices could rise further due to higher demand and limited availability. Premium brands like Apple and Samsung may see price hikes.
• Boost for Local Manufacturing: With fewer imports, locally produced smartphones could become more competitive, leading to more job opportunities and investment in Pakistan’s mobile assembly industry.
• Limited Access to High-End Devices: If the trend continues, access to flagship devices from brands like iPhone, Samsung, and Google Pixel might become even more difficult for Pakistani consumers.
• Reduced Burden on Foreign Reserves: A drop in mobile imports helps reduce Pakistan’s trade deficit, easing pressure on foreign exchange reserves.

Our Thoughts:

Pakistan’s mobile phone imports have declined by 12.04% in the first seven months of FY 2024-25, signalling a shift in consumer preferences and economic constraints. While the reduction in imports may help control foreign exchange reserves and promote local manufacturing, it could also lead to higher prices for imported smartphones. The government’s continued support for local mobile production and a balanced import policy will be crucial in shaping Pakistan’s mobile phone market in the coming months.