Karachi, February 7, 2025 – Pakistan’s mobile phone manufacturing sector has witnessed remarkable growth, achieving a 47% annual increase under the “Made in Pakistan” initiative. This surge highlights the country’s growing technological capabilities and its expanding role in the global mobile phone market.
According to the latest data released by the Pakistan Telecommunication Authority (PTA), local mobile phone production reached an impressive 31.35 million units in 2024, up from 21.28 million units in the previous year. This 47% increase is largely attributed to the government’s import restrictions, which have encouraged demand for locally assembled mobile phones. The restrictions have made imported phones more expensive, leading consumers and businesses to turn to domestically produced alternatives.
The momentum continued throughout the year, with local manufacturers producing 2.95 million mobile phones in December 2024 alone. This marked a 28% month-on-month increase, further underscoring the growing strength of the local mobile manufacturing industry. On a quarterly basis, production surged by 67% in Q4 2024, reaching 8.79 million units, compared to 5.25 million units in Q3 2024.
The substantial rise in mobile phone production in 2024 is a clear sign of Pakistan’s economic recovery and its increasing reliance on locally assembled devices. Analysts at Topline Securities Limited note that the uptick in production is not only driven by the government’s import restrictions but also by higher taxes on imports and a broadening consumer base that prefers affordable and locally manufactured mobile phones.
Of the total 31.35 million locally produced mobile phones, 59% (18.64 million units) were smartphones, while the remaining 41% (12.74 million units) were 2G feature phones. This growing split reflects the rising demand for advanced smartphones in the country, alongside the enduring popularity of feature phones among certain consumer segments.
The top ten locally assembled mobile phone brands in 2024 included Infinix, Itel, VGO Tel, Tecno, Vivo, Xiaomi, Realme, Samsung, G’Five, and Nokia. Leading the pack, Infinix produced 3.98 million units, followed closely by Itel with 3.64 million units and VGO Tel at 3.37 million units. Other major players such as Tecno and Xiaomi also saw substantial production volumes, with Tecno reaching 2.85 million units and Xiaomi at 2.35 million units.
Pakistan’s local manufacturing industry met 95% of its mobile phone demand in 2024, a substantial increase from the five-year average (2019-2023) of 67%, and the eight-year average (2016-2023) of 47%. This marks a significant shift in the country’s mobile phone supply chain, reducing its dependency on foreign imports and supporting economic growth within the local manufacturing sector.
One key player driving this growth is Air Link Communication (AIRLINK), which has emerged as a dominant assembler for major brands like Tecno and Xiaomi. AIRLINK’s production output in 2024 saw substantial year-on-year increases, with Tecno’s output rising by 97% to reach 2.85 million units, and Xiaomi’s production jumping by 79% to 2.35 million units. With the mobile phone market expanding rapidly, AIRLINK is positioned to continue benefitting from this growth, with its stock currently trading at a favorable FY25F P/E of 11.6x and an FY26F P/E of 8.7x.
The growing success of Pakistan’s mobile phone manufacturing sector is not just a testament to the country’s industrial capabilities but also a sign of the potential for further innovation and market expansion. As the government continues to support domestic manufacturing initiatives, the sector’s future looks promising, with an ever-increasing share of the country’s mobile phone demand being met locally. With technological advancements and competitive pricing, Pakistan is poised to become a key player in the global mobile manufacturing landscape.