Pakistan's mobile phone imports have risen sharply in the current fiscal year, even as recent monthly data point to a slowdown, reflecting shifting dynamics in demand and supply. According to official figures, imports of mobile handsets increased by 29.59% to $1.295bn during July-February 2025-26, compared with $999.56m in the same period last year. In local currency terms, the value rose by 31.10% to Rs364.68bn from Rs278.16bn. Short-term trends, however, suggest a cooling phase. On a month-on-month basis, imports declined by 13.26% in February 2026, falling to $155.55m from $179.34m in January. Year-on-year, February still recorded growth of 17.95% compared with $131.87m in the same month last year. Historical data indicate volatility in the segment. During fiscal year 2024-25, mobile phone imports had declined by 21.31% to $1.494bn from $1.898bn in the preceding year. In rupee terms, imports also fell by 22.09% to Rs417.35bn. Broader telecom imports followed a similar pattern last year, decreasing by 1 1.30% to $2.099bn from $2.366bn. At the same time, domestic manufacturing has expanded significantly. Local assembly plants produced 1.69m mobile handsets in January 2026, compared with 0.47m units imported commercially during the same period. Over the full calendar year 2025, local production reached 30.21m units, far exceeding the 2.37m imported. Of the devices assembled in January 2026, 0.92m were smartphones and 0.77m were 2G handsets. Data from the Pakistan Telecommunication Authority indicate that smartphones account for 71% of devices on the network, while 2G phones make up 29%. The figures highlight a growing reliance on both imports and domestic assembly, with demand patterns showing resilience despite short-term fluctuations.