What’s Really Behind the “Made in Pakistan” Label?

“Made in Pakistan” sounds simple enough, right? So if smartphones are now going through Local Assembly in Pakistan, why haven’t prices dropped the way many people expected? It’s a fair question, but the answer starts long before a phone reaches a local assembly line.

While many smartphones sold locally carry an “assembled in Pakistan” label, local factories use SKD (Semi-Knocked Down) and CKD (Completely Knocked Down) kits to assemble phones, high-tech components like processors, OLED displays, and camera modules are still made abroad accounting for 70% to 80% of total manufacturing costs.

Before assembly even begins, international shipping, import duties, and dollar-to-rupee currency fluctuations inflate component prices. While local assembly avoids heavy tariffs on fully built CBU (Completely Built Unit) imports, actual domestic value addition remains at just 8% to 15%, keeping final retail prices heavily tied to import expenses.

That’s why understanding the difference between assembly and manufacturing matters. While Local Assembly takes place in Pakistan, it represents just one stage of the production journey. Until major smartphone components are produced locally, imported parts will continue to play a significant role in pricing across the Pakistan Smartphone Market.