Apple is planning to begin iPhone manufacturing in Pakistan under a new government-backed Mobile and Electronics Manufacturing Framework, a move aimed at transforming the country into a regional export hub for technology products, according to a report by Express Tribune.
Under the proposed framework, the Government of Pakistan has agreed to offer attractive incentives to lure the tech giant, including an enhanced 8 percent performance-based incentive and the provision of industrial land at subsidized rates.
Officials believe these measures will help position Pakistan as a competitive destination for global electronics manufacturing.
In addition to local production, Apple has also agreed to refurbish used iPhones in Pakistan for re-export. The government expects this initiative alone to generate around $100 million in export earnings during its first year, providing a significant boost to the country’s foreign exchange inflows.
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The plan is part of a broader government strategy to attract leading international technology firms by offering competitive incentives while simultaneously strengthening local manufacturing capacity.
Initially, Apple is expected to focus on repairing two- to three-year-old iPhones, following a model it has already implemented in countries such as India, Malaysia, and Indonesia, before transitioning to full-scale manufacturing operations.
As part of the new policy, performance incentives are proposed to be increased from the current 6 per cent to 8 per cent, not only to attract Apple but also to encourage investment from other global electronics manufacturers.
Senior government officials have reportedly endorsed the framework, and formal approval is expected in the near future.
Authorities also confirmed that the policy aims to stimulate wider growth in the electronics sector, including the manufacturing of laptops, tablets, wearable devices, and mobile accessories, as part of Pakistan’s long-term industrial development agenda.
In parallel, Chinese companies are expected to invest approximately $557 million in mobile phone manufacturing in Pakistan, following agreements signed during the Prime Minister’s recent visit to Beijing.
As part of localization requirements, manufacturers have committed to increasing the use of locally produced components from the current 12 percent to 35 percent within the first year, with a long-term target of 50 percent.
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The framework further proposes an export levy of up to 6 percent on high-end mobile phones to help fund technology development initiatives, with projected collections of Rs. 62 billion.
Lower-priced smartphones in the Rs. 50,000 to Rs. 60,000 range will remain exempt from this levy to protect affordability.
Separately, the government is also expanding its electric vehicle policy. A 40 percent subsidy for electric two-wheelers has already been introduced, supported by Rs. 9 billion in funding, and officials are now considering extending similar incentives to electric four-wheelers, including plans for low-cost vehicles priced between Rs. 0.7 million and Rs. 0.8 million.
Officials believe the combined initiatives could significantly strengthen Pakistan’s technology manufacturing ecosystem, boost exports, and create new employment opportunities in the coming years.
