ISLAMABAD: US tech giant Apple Inc. is set to begin iPhone manufacturing in Pakistan under a newly proposed Mobile and Electronics Manufacturing Framework, as the government moves to position the country as a regional hub for mobile and electronics exports.
The framework, expected to receive approval from Prime Minister Shehbaz Sharif, offers a series of incentives aimed at attracting Apple and other global manufacturers.
Incentives and Policy Support
According to the Engineering Development Board (EDB), the proposed policy includes:
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Discounted land provision for manufacturing facilities
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An increase in the performance incentive from 6% to 8%
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Permission to repair and refurbish two- to three-year-old iPhones for re-export
Officials estimate that refurbished iPhone exports alone could generate $100 million in the first year.
Phased Entry Model
Apple is expected to initially begin with refurbishment and repair operations to train local manpower — a model it has previously followed in Indonesia, Malaysia and India — before moving toward full-scale manufacturing.
The government is also seeking to boost localisation in mobile production:
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Current localisation: 12%
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Target in first year: 35%
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Long-term goal: 50%
Export Levy Proposal
To fund technology development and localisation, the government plans to impose an export levy of up to 6% on high-end mobile phones priced above Rs100,000, while mid-range phones between Rs50,000 and Rs60,000 will remain exempt.
The levy is projected to generate Rs62 billion annually, which will be reinvested in the electronics sector.
Broader Investment Outlook
In addition to Apple’s entry, the government expects $557 million in investments from Chinese firms in mobile manufacturing, following agreements signed during PM Shehbaz Sharif’s visit to Beijing.
Officials say the new framework is designed to expand production beyond smartphones to include laptops, tablets, smartwatches, trackers and airbuds.
If implemented, Apple’s manufacturing operations in Pakistan would mark a major milestone in the country’s push toward high-tech industrial growth and export diversification.
