Consumers in Pakistan are set to face significant impacts as mobile phone manufacturers have raised the prices of all models by up to 10,000 rupees (around $50).

This price increase comes in response to the government’s recent imposition of an 18% tax on mobile phones in the latest budget.

The price hike affects both smartphones and feature phones, with some models seeing increases as high as 10,000 rupees.

The Mobile Phone Manufacturing Association had previously cautioned the government that this tax would lead to higher prices, potentially undermining the country’s digital ambitions.

Nevertheless, the government implemented the tax, resulting in the current surge in prices.

This development is expected to severely impact consumers, especially in a nation where mobile phones are vital for communication, business, and information access.

The price hike coincides with a period of growth for Pakistan’s mobile phone manufacturing industry, which saw a 55% year-over-year increase in production in May 2024.

Additionally, 95% of mobile phones are now produced domestically, marking a significant shift towards local manufacturing.

The increased prices are likely to affect sales and could reverse the recent progress made by the industry.

Higher costs may discourage consumers from buying new models, slowing market momentum and impacting overall industry growth.

As Pakistan adjusts to this new economic reality, the full effects of the tax and the resulting price hikes on consumers and the industry remain uncertain.

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