In Pakistan, a notable decline of 10 to 15 percent has been observed in mobile phone prices, driven by the dollar’s depreciation against the rupee in the currency market and the increased local assembly of phones.
As per the latest data available from the State Bank of Pakistan, as of April 05, the exchange rate of the US dollar against the Pakistani rupee is Rs277.8 in the interbank market and Rs277.11 in the open market. This represents a notable decrease from the rate of Rs320 observed in August 2023.
Furthermore, smartphone prices have seen a reduction of Rs300 to Rs8,000 following the import of raw materials and the local assembly of phones after the opening of letters of credit (LCs). Rizwan Irfan, President of the Karachi Electronics Dealers Association, commonly known as the mobile market, noted that a smartphone previously priced at Rs20,000 is now available at Rs17,000 to Rs18,000. He also mentioned that various local and international companies have adjusted their prices accordingly.
With the increasing reliance on mobile phones for accessing social media, the prices of keypad mobile phones have also experienced a decline ranging from Rs100 to Rs500.
According to reports, mobile broadband networks now cover 80 percent of the population, with 97% of internet connections relying on mobile connectivity.
Data from the Pakistan Telecommunication Authority indicates a significant rise in local assembly, with over seven million smartphones produced by local assemblers in the first five months of the current financial year, compared to 8.8 million in 2022. This underscores the growing trend towards domestic manufacturing and its impact on pricing dynamics in the mobile phone market.
