Local mobile phone assembly plants and manufacturers in Pakistan have produced 17.83 million handsets between January and July 2025, while commercial imports remained low at just 1.03 million units.
Out of the total locally produced devices, 8.47 million were smartphones, and 9.36 million were 2G feature phones. Among the brands, Infinix emerged as the leader, producing 2.01 million units during the first seven months of 2025, making it the top contributor to local manufacturing.
However, despite these encouraging production numbers, the overall trend in the country’s mobile phone industry has been showing a decline since 2022.
The slowdown has been largely linked to ongoing economic challenges, high interest rates, and limited investment in the sector. These issues have negatively impacted consumer demand as well as the affordability of smartphones.
One of the most concerning trends is the drop in smartphone penetration across Pakistan. In 2023, smartphones made up 59% of mobile devices in use, but by 2025 this figure has slipped to 48%.
At the same time, the use of 2G feature phones has risen to 52%, showing that more people are switching back to basic handsets.
Industry experts believe this shift highlights affordability issues faced by ordinary consumers, who find it difficult to purchase higher-priced smartphones due to inflation and reduced purchasing power.
If these conditions persist, it may further slow down the country’s digital adoption and hinder progress toward digital transformation goals.
Pakistan’s mobile phone market, once considered a fast-growing sector, is now at a critical point where economic stability and policy support are needed to revive growth.
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