The 18% GST hike in Pakistan’s federal budget has sent mobile phone prices soaring, putting a strain on all buyers, regardless of their budget. This rise isn’t just hitting high-end phone shoppers – even budget-friendly options have become more expensive.
High-end phone prices are soaring, with a particularly dramatic jump for the most expensive models. Phones that once cost Rs 200,000 are now a whopping Rs 36,000 more expensive, putting a serious dent in potential buyers’ budgets. Even phones in the Rs 150,000 range have seen significant price hikes of Rs 19,000, making them less affordable for many consumers. This trend is causing financial strain and sticker shock for those looking to upgrade to the latest flagships.
The price surge isn’t limited to high-end phones. Mid-range devices are feeling the pinch too. Previously Rs 100,000 phones are now Rs 18,000 pricier, while those at Rs 50,000 have jumped by Rs 9,000. Even budget options haven’t escaped the increase, with Rs 25,000 phones now costing Rs 4,000 more.
| Price Range | Increase by |
| Rs. 200,000 | Rs. 36,000 |
| Rs. 150,000 | Rs. 19,000 |
| Rs 100,000 | Rs. 18,000 |
| Rs. 50,000 | Rs. 9,000 |
| Rs. 25,000 | Rs. 4,000 |
Some models have seen increases as high as Rs 10,000. This price surge comes despite warnings from the Mobile Phone Manufacturing Association that the government-imposed tax would harm affordability and hinder the country’s digital goals. With a thriving mobile phone industry boasting a 55% production increase in May 2024 and a shift towards local manufacturing (reaching 95%), this tax increase threatens to stall this progress and hurt consumers who rely heavily on mobile phones.
Adding to the financial strain, the new budget further burdens phone users. A hefty 75% advance tax has been slapped on mobile balance top-ups. This translates to a shocking scenario – for every Rs 100 you try to recharge, only Rs 5.50 will be credited to your phone. This move will significantly impact consumers who rely on mobile phones for daily communication and internet access.
