ISLAMABAD: Pakistan’s local mobile phone manufacturing and assembly rose 9% year-on-year to 3.90 million units in July 2026, marking a sharp rebound for the domestic handset industry after a weak first half of the year.

According to data from the Pakistan Telecommunication Authority (PTA), July production also more than doubled from the previous month, rising 102% from June’s 1.93 million units.

Local Phones Meet 97% of July Demand

The surge in domestic production coincided with a steep decline in handset imports.

Mobile phone imports fell 35% year-on-year and 83% month-on-month to around 110,000 units in July, allowing locally manufactured and assembled devices to account for about 97% of total mobile phone demand during the month.

The figure represents a significant improvement from June, when locally assembled phones accounted for around 75% of demand.

First Seven Months Still Below Last Year

Despite the strong July recovery, Pakistan’s cumulative mobile phone production for the first seven months of 2026 remained below last year’s level.

Local manufacturers produced around 17 million handsets from January to July, compared with 17.83 million units during the same period in 2025, representing a decline of roughly 5%.

The July rebound followed a slowdown earlier in the year, with local assembly falling 8% year-on-year during the first half of 2026.

Local Manufacturing Gains Momentum

The latest figures reinforce Pakistan’s shift towards domestic mobile phone assembly, supported by policies aimed at reducing reliance on finished handset imports and encouraging investment in local manufacturing.

The government has also been working on a Mobile and Electronics Devices Manufacturing Policy 2026–33, aimed at expanding manufacturing, increasing local value addition and developing Pakistan as a potential export hub.

Federal Commerce Minister Jam Kamal Khan recently urged Samsung to consider Pakistan as a regional manufacturing and refurbishment hub, highlighting the government’s push to move beyond domestic assembly towards exports and greater participation in global supply chains.

The July figures suggest that local production remains central to Pakistan’s mobile market, even as the industry faces pressure from changing consumer demand, taxation and competition from imported devices.