As per recent reports, mobile phone imports have declined by 13.6% from July to October 2024 during the first four months of the fiscal year 2024-25. It is indicating a shift of trend from importing to local manufacturing and assembling. If we look at the numbers, mobile phones worth $420.799 million were imported during this period compared to the $469.969 million in imports during the same period last year, which means a decrease of 10.46% in terms of dollars.
If we talk about the local currency, mobile phones worth Rs. 117.017 billion were imported during July-October 2024. However, phone imports were Rs. 135.468 billion during the same months last year, showing a 13.62% year-on-year decrease.
Looking at the month-on-month numbers, they have grown massively by 69.89% as the imports reached $174.338 in October 2024 compared to $102.618 million in September 2024. If we look the October 2024, the imports are again up by 5.06% compared to the same month last year.
Overall Telecom Sector
Around $609.520 million worth of imports were recorded in the telecom sector during the first four months of fiscal year 2024-25. Unlike the mobile phones, the telecom imports have slightly increased by 0.44% compared to the same period last year.
However, the month-on-month trend is identical with the mobile phone imports. They have reached $235.349 million in October 2024 compared to the $152.905 million in September, showing a staggering 53.92% jump. The year-on-year number has also increased by 13.27% as the imports in October 2023 were $207.786 million.
Local Manufacturing vs. Imports
The trend is shifting from imports to local production of mobile phones in Pakistan. The government has been taking different measures to reduce the burden on foreign exchange reserves. As a result, we can see a trend where imports are decreasing and the local production of mobile phones is increasing.
Let’s make it clear with an example. Around 22.59 million mobile phones were produced by the local manufacturing and assembly plants from January to September 2024. For the same period, around 1.17 million units were imported, showing a nearly 2X difference in local and imported phones.
The local manufacturing and assembly plants produced 2.15 million mobile phones in September 2024, whereas only 0.07 million were imported during this period.
One of the key benefits of local production is the stability in the prices of mobiles, which fluctuated a lot during 2023. It has contributed to stabilizing the exchange rate, created more job opportunities, and promoted self-reliance.
Conclusion
In the end, it is welcoming news from the mobile phone industry. Promoting the local manufacturing and assembling of phones has decreased the reliance on imported mobiles. Due to this, the burden on the country’s foreign exchange reserves has been reduced. For the common man, the positive impact is the stabilized phone prices, which fluctuated a lot last year.
Promoting the local industry also helps produce more job opportunities and build self-reliance, which are essential for a stable economy. Keep in mind that it’s just the report of the first four months of FY25. We will have to see if this trend continues in the coming months or if any other factors reverse the trend.
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