Apple set to manufacture iPhones in Pakistan under new incentives framework

The government has agreed to extend a set of incentives to US technology giant Apple Inc. to facilitate the manufacturing and refurbishment of iPhones in Pakistan under a proposed Mobile and Electronics Manufacturing Framework.

According to Engineering Development Board (EDB) Chief Executive Officer Hamad Ali Mansoor, the framework includes three key provisions sought by the company: land at discounted rates, an 8% performance-based incentive, and permission to repair two to three-year-old iPhones for re-export.

“We have included these three conditions in the new proposed Mobile and Electronics Manufacturing Framework to be approved by Prime Minister Shehbaz Sharif,” Mansoor said in an interview.

Under the plan, Apple will initially refurbish older iPhone models in Pakistan, a model it previously adopted in countries such as Indonesia, Malaysia and India before moving to full-scale manufacturing.

The government expects approximately $100 million in export earnings during the first year from refurbished devices.

The existing performance incentive for mobile phone manufacturers stands at 6%, but the government plans to raise it to 8% to attract Apple and other global firms.

Officials also anticipate $557 million in investment from Chinese mobile manufacturers, following memoranda of understanding signed during Prime Minister Shehbaz Sharif’s visit to Beijing.