Islamabad: Apple is set to begin local manufacturing of iPhones in Pakistan under the proposed Mobile and Electronics Manufacturing Framework, government officials said. As part of the plan, the company will also refurbish older iPhones for re-export, with expected revenue of USD 100 million in the first year, according to Hamad Ali Mansoor, CEO of the Engineering Development Board.
Apple’s management has requested discounted land rates and an 8 percent performance incentive, and the company plans to initially repair two- to three-year-old iPhones before scaling up production. These conditions have been included in the framework, which is awaiting approval from Prime Minister Shehbaz Sharif.
The EDB CEO noted that Apple has implemented similar models in countries such as Indonesia, Malaysia, and India, starting with refurbishment before moving to full local manufacturing.
The government currently offers a 6 percent performance incentive to mobile manufacturers, with plans to increase it to 8 percent to attract Apple and other global companies. Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production, has expressed full support for the new mobile and electronics policy.
In addition to Apple, the government expects USD 557 million in investment from Chinese companies in mobile manufacturing, based on memorandums of understanding signed during Prime Minister Sharif’s visit to Beijing.
The policy also aims to promote local production of laptops, tablets, smartwatches, and other electronics, with a goal of establishing Pakistan as a regional hub for exports in the sector. Manufacturers have committed to increasing the use of local parts in phones from 12 percent to 35 percent in the first year, with a target of 50 percent in subsequent years.
As part of the framework, the government plans to introduce an export levy of up to 6 percent to generate PKR 62 billion to accelerate localization. Phones priced between PKR 50,000 and PKR 60,000 will be exempt, while the levy will apply only to devices costing over PKR 100,000.
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