ISLAMABAD: American technology giant Apple Inc. is poised to begin manufacturing and refurbishing iPhones in Pakistan after the government agreed to extend incentives under the proposed Mobile and Electronics Manufacturing Framework.
Under the plan, Apple will initially refurbish two- to three-year-old iPhones for re-export, a move expected to generate $100 million in the first year, according to officials. The company has sought discounted land, an 8% performance incentive, and permission to establish refurbishment facilities — conditions that have been incorporated into the draft framework awaiting approval from Prime Minister Shehbaz Sharif.
Engineering Development Board (EDB) CEO Hamad Ali Mansoor said Apple had adopted a similar model in Indonesia, Malaysia and India, where refurbishment operations were launched first to train local manpower before transitioning to full-scale manufacturing.
The government currently offers a 6% performance incentive to mobile manufacturers, but plans to raise it to 8% to attract Apple and other global players. Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan and the Industries Ministry have extended full support to the proposed policy.
Officials also expect $557 million in investment from Chinese firms in mobile manufacturing following Memoranda of Understanding signed during the prime minister’s recent visit to Beijing.
The new policy aims to position Pakistan as a regional hub for mobile and electronics exports, including laptops, tablets, smartwatches, trackers and earbuds. A key focus is localisation: manufacturers have pledged to raise local component usage from the current 12% to 35% in the first year, with a long-term target of 50%.
To fund technology upgrades, the government plans to impose an export levy of up to 6% on premium mobile phones priced above Rs100,000, while devices in the Rs50,000–60,000 range will remain exempt. The levy is projected to generate Rs62 billion for reinvestment in the sector.
Separately, the government is reviewing the expansion of its electric vehicle (EV) subsidy programme. Currently, Rs9 billion has been allocated to offer a 40% subsidy on electric two-wheelers, financed through a 3% tax on the gross sale value of conventional local and imported vehicles.
Officials revealed that Rs12 billion has already been collected in six months, exceeding the initial target and creating room to extend subsidies to electric four-wheelers. A Lahore-based company is reportedly establishing a plant to manufacture affordable electric cars priced between Rs700,000 and Rs800,000.
The second phase of the e-bike scheme is expected to move away from balloting and instead offer broader access, alongside plans to digitise certification and regulatory processes to ensure transparency in the auto industry.
The proposed Mobile and Electronics Manufacturing Framework is seen as a major step toward strengthening Pakistan’s export base and attracting global technology investment.
Story by Zafar Bhutta
