In a landmark development, Apple to manufacture iPhones in Pakistan has become the latest headline reshaping the country’s technology landscape. The government has agreed to offer special incentives under the new Mobile and Electronics Manufacturing Framework, opening the door for one of the world’s biggest tech giants to begin operations locally.
This move could transform Pakistan into a regional hub for mobile phone and electronics exports.
About Apple – The Global Tech Giant
Founded in 1976, Apple Inc. stands among the world’s most valuable companies. It designs and sells products like the iPhone, MacBook, iPad, Apple Watch, and AirPods. Over the years, Apple has expanded manufacturing operations beyond the United States to countries like India, China, Malaysia, and Indonesia.
Now, Pakistan may join that list.
Government Incentives to Attract Apple
To make this project possible, the government has agreed to:
• Offer land at discounted rates
• Provide an 8% performance-based incentive
• Support refurbishment and re-export of iPhones
Currently, Pakistan offers a 6% performance incentive to mobile manufacturers. However, authorities plan to increase it to 8% to attract Apple and other global brands.
The Engineering Development Board (EDB) confirmed that the proposal awaits approval from Prime Minister Shehbaz Sharif.
Read more: https://www.pediastan.com/articles/pakistan-apple-authorised-reseller-store/
Apple Plans Refurbished iPhones for Re-Export
Initially, Apple plans to refurbish two to three-year-old iPhones in Pakistan. This strategy mirrors its earlier expansion model in India and Indonesia. First, the company trains local manpower through repair and refurbishment operations. Later, it gradually shifts toward full-scale manufacturing.
The government expects around $100 million in the first year from the re-export of refurbished iPhones.
This approach will not only generate foreign exchange but also create skilled technical jobs.
Boost for Localisation and Investment
Pakistan currently achieves around 12% localization in mobile manufacturing. However, under the new framework, manufacturers have pledged to increase local parts usage to:
• 35% in the first year
• 50% in later phases
Moreover, Chinese companies have signed Memorandums of Understanding (MoUs) worth $557 million during PM Sharif’s Beijing visit. These investments could expand manufacturing to laptops, tablets, smartwatches, trackers, and earbuds.
Clearly, the government has a burning desire for Pakistan to become a serious electronics export hub.
Export Levy to Fund Technology Growth
To strengthen local production, authorities plan to impose an export levy of up to 6% on high-end phones costing above Rs100,000. However, mid-range phones priced between Rs50,000 and Rs60,000 will remain exempt.
Officials are expected to collect around Rs62 billion, which will fund technology upgrades and localisation efforts.
Cheaper Electric Vehicles Also in Focus
Alongside mobile manufacturing, the government continues to promote electric vehicles (EVs). It has allocated Rs9 billion for a 40% subsidy on electric two-wheelers. Now, officials plan to extend this support to electric four-wheelers as well.
A Lahore-based company is reportedly setting up a plant to produce small electric cars priced between Rs700,000 and Rs800,000.
What This Means for Pakistan
If Apple manufactures iPhones in Pakistan, the country could:
• Increase foreign direct investment
• Create skilled jobs
• Boost exports
• Strengthen the rupee
• Develop technical expertise
This initiative is marking a massive shift from simple assembly to higher-value electronics manufacturing.
If implemented successfully, Pakistan’s technology sector could enter a new growth phase.