The Ministry of IT and Telecommunication has set an ambitious target to achieve $500 million in revenue from smartphone exports within the next three years.
Official documents reveal that the Government of Pakistan is actively devising strategies to enhance the competitiveness of local manufacturers in the global smartphone export market.
As per the Ministry of IT and Telecommunication document, the government plans to incentivize the local mobile industry by offering a 3% allowance for research and development to mobile manufacturers, with intentions to raise this allowance to 8% in the future.
Pakistan currently ranks as the 7th largest market for cellular users globally, with approximately 189 million people, accounting for 78% of its population, owning mobile phones. In 2023, domestic production of phones in Pakistan amounted to 21.28 million units, while imports stood at 1.58 million units.
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Despite substantial domestic production capacity, Pakistan’s current smartphone exports are relatively modest, totaling around 250,000 phones valued at approximately $150 million. However, with 33 handset manufacturers operating in the country and the capability to meet the entire local demand of 25 million phones annually, there exists significant potential for growth in the export market. Moreover, local manufacturing of mobile phones has already generated approximately 40,000 jobs in Pakistan, contributing to economic growth and employment opportunities.
Looking forward, the government is also formulating a policy for the indigenization of components, focusing on parts such as chargers, batteries, hands-free sets, USB cables, and packaging. By promoting local manufacturing and enhancing the value chain, Pakistan aims to strengthen its position in the global smartphone market further and drive economic development in the country.