Why are Value-for-Money Smartphones Limited in Pakistan?

Infinix Note 50: Overpriced and Overhyped?

Infinix has entered the mid-range smartphone battle with its latest offering, the "Note 50." The device features a MediaTek Helio G100 processor and a camera without proper stabilization, all for a price of PKR 65,000. The company attempted to create hype through so-called "sponsorships." However, in today’s market, companies can no longer sell overhyped products, as customers are well-informed and know which device offers the best value for their money. Despite this, Pakistan still faces significant issues regarding smartphone launches, particularly when it comes to value-for-money devices.

Higher PTA Taxes

 credit:Sarah Agnew

What can we say about that? For instance, the iPhone 5 has a PTA tax of PKR 48,000 for its 16GB variant, while the iPhone 16 Pro Max carries a staggering PKR 175,000 tax. This heavy taxation makes it difficult for companies to launch affordable, value-for-money devices. Smartphone companies face multiple charges, including "Regulatory Duty, Custom Duty, Sales Taxes, Withholding Tax, Federal Excise Duty, and Mobile Levy." These taxes significantly increase the cost of launching devices in Pakistan. However, local assembly of smartphones is relatively cheaper for companies, which is why many are now shifting to assembling their devices in Pakistan.

Government's Lack of Interest in 5G

credit: Alex Rybin

The government initially set a tentative launch date for 5G in June 2025, but it has now been postponed again to the first quarter of 2026 due to telecom mergers and legal issues, as reported by Samaa News. From a customer’s perspective, 5G is far superior to 4G in terms of network speed and reduced latency. However, instead of prioritizing technological advancement, the government is more focused on installing internet firewalls. At one point, Pakistan was ahead of India in internet speed, but now, India has had 5G since October 1, 2022, while Pakistan is still struggling to issue spectrum licenses to telecom companies.

Companies Taking Advantage of Government Incompetence

credit: Joshua Hoehne

Many global smartphone brands hesitate to invest in Pakistan due to inconsistent government policies. Every government claims to bring technological advancements, such as promises of 5G deployment and support for local smartphone manufacturing, but the reality on the ground remains unchanged, as delays in spectrum allocation and inconsistent policies continue to hinder progress. As a result, brands like iQOO, Nothing, and Google do not officially launch their devices in Pakistan. The companies that do enter the market often launch only a limited number of lower-end models. This lack of competition allows companies to price their devices significantly higher.

For example, the Infinix Note 50, featuring a Helio G100 (a 4G processor), is priced at PKR 65,000 in Pakistan. In contrast, the same device in India, when converted to Indian rupees, is available for around INR 12,000—but with a better processor, the MediaTek Dimensity 7300.

Until the government addresses these taxation policies and technological shortcomings, Pakistani consumers will continue to face high prices and limited choices in the smartphone market. A possible solution could be implementing tax reforms to reduce the burden on smartphone imports and encouraging local manufacturing through incentives. Additionally, the government should streamline spectrum allocation and foster a competitive environment to attract global brands, ensuring better options for consumers.