Pakistan’s Mobile Phone Production Dropped Sharply in October – Here’s Why

Local manufacturing and assembly of mobile phones in Pakistan fell by 23% month-on-month in October 2025, according to the latest data released by the Pakistan Telecommunication Authority (PTA) and compiled by Topline Securities. The industry produced 2.33 million units in October, down 34% year-on-year compared to 3.53 million units in October 2024, mainly due to a production slowdown caused by high inventory levels. Industry checks show that the drop in production is largely the result of elevated inventories across the market. With distributors and retailers holding excess stock, manufacturers reduced output to avoid further build-up. Cumulatively, mobile phone manufacturing and assembly reached 25.11 million units during the first ten months of 2025, a 4% decline compared to the same period last year. Of the 25.11 million units produced in October, 53% (13.2 million units) were smartphones, while the remaining 47% (11.9 million units) were 2G phones. Pakistan met 94% of its mobile phone demand through local manufacturing and assembly in the first ten months of 2025. This represents a significant improvement compared to the 5-year average of 77% (2020–2024) and the 9-year average of 52% (2016–2024). Looking ahead, mobile phone sales are expected to grow by 7–8% year-on-year over the next 12 months, supported by a stable rupee, easing inflation, and improving consumer purchasing power. Within the listed space, Airlink Communication (AIRLINK) and Lucky Cement (LUCK) are expected to benefit from rising demand, as their locally assembled brands, such as Tecno, Xiaomi, and Samsung, rank among the top 10 in the market.