ISLAMABAD: Apple set to manufacture iPhones in Pakistan under a new incentives framework as the government moves to attract global technology investment and expand the country’s electronics export base.
The federal government has agreed to extend a series of incentives to Apple Inc. to facilitate the manufacturing and refurbishment of iPhones in Pakistan under a proposed Mobile and Electronics Manufacturing Framework. The initiative is aimed at strengthening local production capacity while boosting exports.
According to Engineering Development Board (EDB) Chief Executive Officer Hamad Ali Mansoor, the framework incorporates three major provisions sought by the US tech giant. These include land at discounted rates, an 8% performance-based incentive, and permission to repair two to three-year-old iPhones for re-export.
“We have included these three conditions in the new proposed Mobile and Electronics Manufacturing Framework to be approved by Prime Minister Shehbaz Sharif,” Mansoor said in an interview.
Under the plan, Apple will initially begin by refurbishing older iPhone models in Pakistan before transitioning to full-scale manufacturing at a later stage. The company has previously adopted a similar phased strategy in countries such as Indonesia, Malaysia and India, where refurbishment operations paved the way for broader manufacturing expansion.
Officials expect that the refurbishment of devices for export could generate approximately $100 million in export earnings during the first year alone. The move is also seen as a step toward positioning Pakistan as a competitive player in the global electronics supply chain.
Currently, the performance-based incentive for mobile phone manufacturers stands at 6%. However, under the new framework, the government plans to increase it to 8% in a bid to attract Apple and other major international firms to establish production facilities in the country.
In addition to Apple’s potential entry, officials anticipate around $557 million in investment from Chinese mobile manufacturers. These expectations follow memoranda of understanding signed during Prime Minister Shehbaz Sharif’s recent visit to Beijing.
Industry experts believe that if successfully implemented, the framework could significantly enhance Pakistan’s mobile phone manufacturing ecosystem, create employment opportunities, and reduce reliance on imports. The development marks a major push by Islamabad to transform the country into a regional hub for electronics production and exports.
