[Python] Python does not recognise a package

I have a folder: backend/api

In the folder I have the following files:

❯ exa --tree
.
├── __init__.py
├── api.py
├── requirements.txt
└── routers
├── __init__.py
└── phone.py


In the api.py I have the following:

from api.routers import phone

When I start up the file I get the following error:

ModuleNotFoundError: No module named 'api.routers'; 'api' is not a package


Isn't placing an init.py file making a Python folder a package?

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