Used Phones Flood Pakistan as Local Smartphone Production Falls 43%

Pakistan's mobile phone manufacturing sector is experiencing a surge in imported handsets, with used smartphones making up the majority of fully built devices entering the country in September. Local smartphone production dropped below average, while imports of new and used fully built smartphones totaled 128,737 units, valued at roughly $33.43 million.

Used smartphones accounted for nearly 82% of the total imports, highlighting a significant shift in demand toward second-hand devices. In contrast, local production reached only 628,030 units, representing just a small portion of the overall imported devices. Imported devices made up around 17% of the total volume, with the feature phone segment seeing less of a decline in local production.

Industry experts warn that higher smartphone taxes, reduced consumer purchasing power, and increased competition from imported devices are putting pressure on local manufacturers. A senior leader in the Pakistan Mobile Phone Manufacturers Association expressed concern that the combination of rising imports and falling domestic production could force factories to close, leading to job losses across the sector.

Industry stakeholders are urging the government to reconsider mobile phone taxation and import policies, arguing that the increasing reliance on imported devices threatens domestic production, employment, and foreign exchange resources.