Pakistan’s mobile phone industry has reached a historic turning point in March 2026. Local manufacturing now fulfills the vast majority of the country’s communication needs.
The Minister for IT and Telecommunication, Shaza Fatima Khawaja, recently confirmed that nearly 95% of mobile phones used in Pakistan are now locally produced. This shift marks a successful transition from an import-dependent market to a self-reliant manufacturing hub.
The industry has shown remarkable resilience over the last two years. While the global economy faced challenges, Pakistan’s assembly lines continued to expand their capacity and technical sophistication.
Record-Breaking Production Cycles
The year 2024 was a landmark period for the sector. Local plants produced a record-breaking 31.38 million mobile handsets. This represented a massive 47% increase compared to the previous year.
In 2025, the industry saw a slight stabilization. Total production reached 30.21 million units. While this was a minor 4% decline from 2024, experts attribute the dip to high inventory levels and longer user replacement cycles.
Despite this slight volume decrease, the value of the phones produced has increased. More manufacturers are moving away from basic feature phones toward advanced devices.
The Rise of the Smartphone
For the first time in the country’s history, smartphones have taken the lead in local production. In 2025, smartphones accounted for 52% of all locally assembled units, totaling 15.64 million devices.
The remaining 48%, or 14.57 million units, were 2G feature phones. This shift reflects a growing demand for high-speed internet and digital services across the country.
Data from the Pakistan Telecommunication Authority (PTA) confirms this trend. Smartphones now make up 71% of all active devices on national networks. This is a significant jump from only 61% just two years ago.
Read more: iPhones Made in Pakistan? Inside Apple’s Big Move, Incentives & Investment Plan
The New Manufacturing Policy 2026–33
The government has launched the Mobile and Electronic Devices Manufacturing Policy 2026–33 to sustain this momentum. This ambitious framework aims to move beyond simple assembly.
One of the primary goals is to achieve a 50% localization rate for mobile components by 2033. This includes the domestic production of batteries, screens, and chargers.
The policy also introduces the Technology Innovation Fund. This fund will be supported by levies on imported parts. It will provide an 8% rebate to manufacturers who export ‘Made in Pakistan’ phones to global markets.
Shifting Focus to Global Exports
Pakistan is no longer just looking at its own borders. The 2026–33 policy sets a clear target for mobile phone exports to exceed $500 million annually.
The government believes that Pakistan can become a competitive exporter in the region. By leveraging low labor costs and a strategic location, local plants are preparing to ship devices to markets in the Middle East and Africa.
The policy also includes a proposed ban on the import of used mobile sets. This move is designed to protect local manufacturers and encourage consumers to buy new, locally assembled devices.
Economic Impact and Job Creation
The local mobile sector has become a vital pillar of the national economy. It currently contributes roughly $1.2 billionin government revenue through various taxes and duties.
Furthermore, the industry provides skilled employment to over 40,000 Pakistanis. The new 2026–33 policy expects to create an additional 50,000 jobs as component manufacturing plants begin operation.
By assembling phones locally, Pakistan has saved significant foreign exchange. Estimates suggest that local production saves between 15% and 20% in costs compared to importing finished units.
The 5G Catalyst and Future Growth
The timing of this manufacturing boom coincides with the rollout of 5G technology. The 5G spectrum auction in March 2026 is expected to trigger a new wave of device upgrades.
Local manufacturers are already shifting their assembly lines to produce 5G-ready smartphones. This ensures that Pakistani consumers can access the latest technology at affordable prices.
The government is also in talks with global giants like Samsung and Apple. The goal is to move from third-party assembly to direct foreign investment in high-tech manufacturing facilities.
Strengthening the Supply Chain
The 2026–33 policy sets strict deadlines for the local production of accessories. By July 2026, all packaging materials must be sourced locally.
Within the following year, chargers and plastic components must also meet localization targets. These steps ensure that the “Made in Pakistan” label represents genuine local value addition.
Industry analysts project a 7% to 8% growth in the sector over the next 12 months. A stable rupee and easing inflation are expected to boost consumer purchasing power further.
Pakistan’s journey from a mobile importer to a manufacturing powerhouse is nearly complete. With the right policy support, the next decade will see the country emerge as a significant player in the global electronics trade.