Pakistan is on the verge of a major leap in electronics and mobile device production after American tech giant Apple Inc. agreed to begin manufacturing and refurbishing iPhones in Pakistan. The agreement follows government incentives under a newly proposed Mobile and Electronics Manufacturing Framework, aimed at turning Pakistan into a regional hub for mobile and electronics production.
Strategic Framework and Incentives
Under the proposed framework, the Government of Pakistan will offer Apple discounted land rates and an 8 percent performance incentive to set up manufacturing facilities in the country. These incentives are targeted at attracting global tech companies and boosting Pakistan’s electronics industry.
Hamad Ali Mansoor, Chief Executive Officer of the Engineering Development Board (EDB), confirmed that Apple’s entry into Pakistan’s manufacturing sector is expected to deliver multiple economic benefits. Apple has also committed to refurbish iPhones in Pakistan for re-export, with the government forecasting $100 million in revenue from re-exports in the first year.
Mansoor explained that the conditions Apple requested — discounted land, 8 percent incentive, and a refurbishing strategy — have been integrated into the new framework and will be submitted for approval by Prime Minister Shehbaz Sharif. Pakistan hopes the policy will also attract other multinational manufacturers.
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Global Precedents and Local Opportunity
Apple has followed this model in other emerging manufacturing hubs such as Indonesia, Malaysia, and India, where it initially began with refurbishing older devices to train local workforce and gradually expanded into full-scale manufacturing operations.
Pakistan’s government already offers a 6 percent performance incentive to existing mobile makers, but that will be increased to 8 percent to attract larger players like Apple. Officials see this move as crucial to enlarging the domestic manufacturing ecosystem and reducing dependency on imports.
The policy is designed to encourage local and foreign investors to manufacture mobile phones and electronic devices within Pakistan, including laptops, tablets, smart watches, trackers, and earbuds, expanding beyond phones into broader consumer electronics.
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Localisation and Economic Impact
Currently, Pakistan’s mobile phone manufacturing uses about 12 percent local components. With the new policy, phone manufacturers have pledged to raise the localisation rate to 35 percent in the first year, with a future target of 50 percent. This localisation could help build local supply chains and create jobs.
To further support industry growth, the government plans to impose an export levy of up to 6 percent on premium smartphones costing above Rs100,000. Revenue from this levy is earmarked for technology and industry investment. Phones priced between Rs50,000 and Rs60,000 will be exempt.
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Boost for Manufacturing Sector and Beyond
Industry insiders believe Apple’s decision could be a game-changer for Pakistan’s tech manufacturing sector. It may signal confidence in Pakistan’s evolving industrial policies and encourage other international brands to follow suit. China has also shown interest with expected investments worth $557 million in mobile manufacturing, supported by Memoranda of Understanding (MoUs) signed during Prime Minister Shehbaz Sharif’s visit to Beijing.
The government also hopes the new policy will strengthen electronics exports and reduce the country’s trade deficit linked to imported devices. Over the long term, the initiative aims to create a diversified tech manufacturing base in Pakistan that can compete in South Asia and beyond.
