Mobile phone manufacturers in Pakistan are urging the government to implement a localisation policy, reduce prices, and control cellphone smuggling to support the local industry.
There are approximately 36 local assembling units in the country, which currently meet 95% of the market demand. This has led to the creation of 40,000-50,000 jobs, and major global mobile brands are actively operating in Pakistan.
However, the growth of mobile phone sales has not met expectations due to the challenging economic conditions. Despite this, manufacturers are optimistic that demand will increase as the economy stabilizes. As demand grows, it is expected to drive investment and create more employment opportunities.
Amir Allahwala, Vice Chairman of the Pakistan Mobile Phone Manufacturers Association (PMPMA), emphasized the need for localisation in the industry. He explained that mobile phone sets contain 70-80 components, many of which are locally assembled. He urged the government to reduce duties on raw materials and increase duties on finished parts to promote local production. For instance, he suggested that the import duty on raw materials for chargers should be eliminated, while finished chargers should face a 20% duty. This would encourage localisation, allowing Pakistan to manufacture phone chargers domestically.
Allahwala also advocated for the implementation of the Mobile Device Manufacturing Policy 2020, which includes provisions for export initiatives, localisation, and incentives for research and development (R&D). A proper tariff structure, he argued, is crucial to making localisation viable.
Currently, Pakistan imposes zero duty on imports of chargers, batteries, and cables, but charges 20-30% duty on raw materials for these products. Allahwala suggested reversing this approach, with zero import duty on raw materials and higher duties on finished products to incentivise local manufacturing.
He pointed out that India offers 7-8% export incentives to its local industry, which has contributed to higher export volumes. In contrast, Pakistan lacks such incentives, resulting in negligible exports. He stressed that offering export incentives and fully implementing the localisation policy would create opportunities for both localisation and export growth.
Realme spokesperson Asma Hayat also highlighted the need to control the sales of illegal mobile phone sets and smuggling to promote the local industry. She called for tax reductions to offer price relief to consumers. Hayat added that the industry is growing steadily, with Realme’s sales reaching 150,000 units per month in Pakistan, including 40,000 units in Karachi.
In total, over 2.5 million locally assembled mobile phones of various brands are produced every month, and the country demands more than 30 million chargers annually.
