KARACHI: The influx of low-cost China-made mobile phones has slowed down the country’s overall import bill over the last two to three years.

Cell phone imports plunged by nine per cent in July-December 2013-2014 to $315 million from $345.6m in the same period last fiscal.

Figures of Pakistan Bureau of Statistics (PBS) show that import of mobile phones declined by 11pc in 2012-2013 to $614m from $688m in 2011-2012. However, imports in 2010-2011 were $522m.

Director of United Mobile, Azad Lalani, attributed the plunge to multiple reasons. One reason, he told Dawn on Wednesday, was decline in average selling price in world markets coupled with rising imports of low-priced cell phones from China.

Another reason was the departure of many importers from the market who could not sustain as they failed to provide good quality phones to the consumers.

He said that a stiff competition is going on among many distributors and importers of cell phones as they are operating on very tight margin and credit risk to the retailers.

He agreed that trend of using smartphones is rising, but their market share still hovers at 15-20pc in which the price of most sought-after brands ranges between Rs10,000-12,000. Around 80-85pc market share is still held by cell phones carrying price of Rs2,500-4,000.

Because of disturbing law and order and snatching of mobile phones, most people still prefer using cheap cellular phones, he added.

“Realistic imports are going on and the country’s mobile phone imports hover between 1.4-1.5m a month,” he said, adding that a year ago imports of mobiles touched 2m sets a month.

Around 99pc of mobile are coming from China under Free Trade Agreement (FTA) in which the importers get a relief by not paying Rs250 per set. However, the government charges Rs150 to Rs500 per set depending on the model, and 5.5pc advance income tax on imports.