Pakistan's mobile phone manufacturing industry currently maintains a domestic value addition of 10% to 15%. The Pakistan Telecommunication Authority (PTA) reports that more than 35 manufacturers have established plants across the country.
These manufacturing facilities generated approximately 40,000 jobs, according to the PTA. By February 2023, 31 companies had secured manufacturing authorisations, which brought in roughly $300 million in investment.
Local plants produced 21.94 million handsets in 2022, while only 1.53 million phones were commercially imported during that same year. The country spent around Rs520 billion on mobile phone imports in FY26, with Rs420 billion allocated for kits used in local assembly.
Localisation reached only 10% by June 2023, falling short of the 49% target. Importing components such as chargers, batteries, cables, and motherboards as part of completely knocked-down kits attracts zero customs duty.
Conversely, raw materials and intermediate inputs required to manufacture components locally face duties ranging from 20% to 30%. Taxes account for 23.6% of the cost of a $30 phone and 50.26% of the cost of a $700 handset.
A phone costing Rs196,000 incurs an additional Rs98,500 in taxes. The Pakistan Telecommunication Authority blocked approximately 100 million illegal devices in FY25, including nearly 72 million counterfeit phones and 27 million devices with cloned International Mobile Equipment Identity numbers.
In comparison, India's mobile phone industry achieved approximately 20% local value addition with more than 400 companies producing various components. Mobile phone exports exceeded $30 billion last year.
