2 min read
Pakistan’s mobile phone manufacturing sector faced a significant slowdown this past October. New data from the Pakistan Telecommunication Authority (PTA) reveals a sharp decline in output. Manufacturers produced just 2.33 million units in October 2025.
This figure represents a massive 34% drop compared to the 3.53 million units produced in October 2024. Furthermore, production fell by 23% from the previous month, September 2025.
The primary reason for this downturn is a saturated market. Distributors and retailers are currently holding excess stock. Consequently, manufacturers decided to scale back operations.
They reduced output to prevent further inventory buildup. Reports suggest that companies made this move to protect their working capital and manage cash flow better. They also aimed to reduce storage costs associated with unsold goods.
Despite this monthly dip, Pakistan’s mobile phone manufacturing remains robust. Between January and October 2025, local plants satisfied 94% of the country’s total mobile phone demand. This is a significant jump from the 5-year average of 77%.
The industry’s cumulative production for the first ten months of 2025 stands at 25.11 million units. This marks a slight 4% decline compared to the same period last year.
Smartphones dominate the production lines. Out of the total output, smartphones accounted for 53% (13.2 million units). Meanwhile, 2G feature phones made up the remaining 47% (11.9 million units).
Infinix led the race among local assemblers, producing 3.12 million units so far this year. VGO Tel followed closely with 2.82 million units, while Vivo took the third spot with 2.27 million units.
Analysts remain optimistic about the near future. They expect mobile phone sales to grow by 7–8% over the next 12 months.
Several factors support this positive forecast. A stable rupee, easing inflation, and improved consumer purchasing power should boost demand. Additionally, listed companies like Airlink Communication and Lucky Cement stand to benefit from this recovery, as their partner brands continue to rank among the market leaders.
