Mobile phones import surge 52% to Rs330 billion in FY21

KARACHI: The import of mobile phones has surged 52 per cent to Rs330 billion during the fiscal year 2020/21, owing to higher demand for the financial services in the wake of the coronavirus pandemic, according to the data released by the Pakistan Bureau of Statistics.

The import of mobile phones increased to Rs330 billion during July–June 2020/21, compared with Rs217 billion in the preceding fiscal year.

Market sources said the sharp increase in the import bill of mobile phones was due to the rise in the use of digital financial services and communication during the coronavirus pandemic.

Further, effective measures to stop smuggling of the mobile phones also helped increase in clearance through formal channels.

Besides, the deterioration in the rupee value also added to the rise in payments for imports of mobile phones.

In dollar terms, the country had spent $2.06 billion during 2020/21 on the import of mobile phones, which was over 50 per cent higher, compared with $1.37 billion in the preceding fiscal year.

The State Bank of Pakistan (SBP) in a report released recently said work from home, amid the coronavirus pandemic accelerated the demand for mobile phones.

“Though the reduction in taxes may have contributed to the increased demand, [the] work from home arrangements and the adoption of distance learning methods by educational institutions have also likely played a major role in pushing up the import demand for cell phones.”

As the coronavirus severity is declining, the demand for the mobile phones also witnessed reduction. The country paid Rs32 billion for import of mobile phones in June 2021, compared with Rs38.20 billion in the same month of the last fiscal year, showing a decline of 16.3 per cent, the data showed.