Higher Import Duties Blunt Mobile Growth in 2008/09

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New data published by the Pakistan Telecommunications Authority (PTA) show that the value of mobile handsets imported into the country in the 2008/09 financial year fell for a second consecutive year, from US$446mn to US$130mn. In 2006/07 imported handsets had reached a value of US$670mn. There have been two main reasons for this decline. Firstly, the government raised taxes on sales of mobile phones in order to help its growing debt burden, and secondly the global recession began to force consumers to defer buying new phones.