ISLAMABAD: The budgetary move to impose 18 per cent sales tax on mobile phones has begun to impact the market, leading to a decrease of approximately 34 per cent in local assembly for October compared to the same month last year.

The overall roll-out of locally produced mobile phones has increased due to the effective implementation of the Device Identification, Registration, and Blocking System (DIRBS) by the Pakistan Telecommunication Authority (PTA). This system restricts the usage of non-tax-paid imported phones. However, consumers have begun to show reluctance to purchase new phone sets.

The PTA data showed that local monthly mobile phone manufacturing plunged 34pc year-on-year to 2.33 million units in October from 3.53m, and fell 23pc from September.

Responding to Dawn’s query, Pakistan Mobile Phone Manufacturers Association (PMPMA) Deputy Vice-Chairman Zeeshan Mianoor said that the mobile roll-out was higher in the previous months as market forces too increased their inventories ahead of the unveiling of the budget 2025-26.

“The distributors and retailers already have excess inventory, whereas the sales have declined with the imposition of 18pc sales tax; as a result, the prices of the sets have increased,” Mr Miannoor added.

Eventually, manufacturers have reduced production to avoid further stock accumulation, and cumulative local manufacturing could reach 25.11m units in 10 months of the calendar year 2025.

Out of these, 13.2m units, or 53pc, were smartphones, while 47pc, or 11.9m, were feature phones.

Currently, over 97pc of mobile phones sold in the country are locally manufactured. PMPMA data showed that during the first 10 months of this calendar year, a total of 675,177 phones were imported by commercial importers and individuals returning from abroad.

The highest number of 238,712 sets imported in 10MCY25 belonged to iPhones (Apple), followed by 208,940 feature phones from Nokia.

In 2024, a total of 154,836 iPhones were imported. A senior member of the PMPMA pointed out that while many view the iPhone as a status symbol — often opting for older models — most new iPhone models are purchased primarily to be given as gifts. Whereas, in 2024, locally assembled phones reached 32.80m units, and only 792,208 sets were imported.

During the period January-October, the highest-selling locally produced phone in the country was Infinix with 2.90m roll-out, followed by Vgotel (2.74m), Vivo (2.36m), Itel (2.13m), Tecno (1.49m), Xiaomi (1.42m), and Samsung (1.32m).Gfive is the largest producer of feature phones in the country, manufacturing 1.17m units in 10MCY25.

Published in Dawn, November 26th, 2025