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Thursday, February 26, 2026

Pakistan offers incentives as Apple plans iPhone manufacturing, refurbishing

ISLAMABAD: Pakistan is moving to attract global technology investment after authorities confirmed plans aimed at enabling Apple to manufacture and refurbish iPhones in the country under a proposed Mobile and Electronics Manufacturing Framework.

Officials from the Engineering Development Board (EDB) said the government has incorporated incentives requested by the company, including discounted industrial land and an 8 percent performance-based incentive. The framework is expected to be submitted for approval by Prime Minister Shehbaz Sharif.

Under the plan, refurbished iPhones aged two to three years would initially be processed in Pakistan for export markets. Authorities estimate export earnings of around $100 million during the first year of operations.

The EDB said Apple has previously followed a similar phased approach in other Asian countries, beginning with refurbishment and workforce training before expanding into full-scale manufacturing.

Pakistan currently provides a 6 percent incentive to mobile manufacturers. The revised policy proposes raising it to 8 percent to encourage high-value investment and technology transfer. Officials added that the broader policy also targets production of laptops, tablets, wearables and related electronics.

The government aims to increase local component usage in mobile production to 35 percent in the first phase and eventually to about 50 percent. Current localisation levels are estimated near 12 percent.

Authorities are also considering an export levy on high-priced devices to fund technology development, while exempting mid-range phones. Revenue collected would support localisation and industry capacity building.

Separately, policymakers expect additional foreign investment in electronics manufacturing from international firms and have linked the initiative to plans for expanding Pakistan’s technology exports and skilled workforce.

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