Ayesha Saba

Collaboration between local tech startups and international brands can help diversify Pakistan’s mobile ecosystem. Adnan Hassan, a technology policy expert at Pakistan Institute of Science and Technology, highlighted that the mobile market in Pakistan has grown exponentially, with a significant rise in smartphone penetration. “However, the ecosystem remains reliant on imported devices and software. By supporting local startups, the country could reduce its dependency on imports and stimulate innovation tailored to the domestic market.”

Hassan emphasised that joint ventures could help bridge the gap between technology importers and homegrown developers. He said that the entry of Chinese firms has brought in advanced technology, efficient production processes, and the expertise needed to establish a sustainable mobile manufacturing ecosystem. “These partnerships have also created a ripple effect, empowering local manufacturers to enhance their capabilities and meet global standards.” Chinese mobile brands like Xiaomi, Vivo and Oppo have played a critical role in this transformation.

By setting up assembly plants in Pakistan, these companies have not only catered to the domestic market but also laid the foundation for export potential Hassan emphasised the need to integrate local startups into the ecosystem. “Pakistan’s tech talent is underutilised in the mobile industry,” he remarked. “Collaboration with foreign brands can provide access to advanced technologies and market expertise while also empowering local entrepreneurs to adapt global innovations to local needs.” He said that sustaining this growth would require a robust focus on research and development and innovation.

“We cannot rely solely on assembling foreign designs,” he cautioned. “There needs to be an emphasis on developing indigenous technologies and fostering a culture of innovation within the local industry.” Additionally, he advocated continued policy support and infrastructure development to keep pace with the industry’s expansion. “Stable electric supply, advanced logistics networks, and an educated workforce are critical to maintaining the upward trajectory of local manufacturing.” Pakistan Telecommunication Authority’s annual report 2024 says that the telecom sector generated a record revenue of Rs955 billion in FY24, marking a 17% increase from the previous year despite economic challenges.

Cellular services now cover 91% of the population, with 4G reaching 81%. Telecom subscribers rose to 196 million by September 2024, while broadband users increased from 127.6 million to 142.3 million since June 2023. Average mobile internet speeds improved by 28%, and data usage grew by 24.2%, reaching 25,141 terabytes. Broadband penetration also rose to 58.4% from 53.6% in 2023. During FY24, 29.6 million mobile devices were locally manufactured, meeting 94% of the country’s demand, the report said.

Credit: INP-WealthPk