Apple Inc. plans to begin refurbishing iPhones in Pakistan before moving toward local assembly under a proposed incentives framework aimed at transforming the country into a regional electronics hub, a senior government official said.
Hamad Ali Mansoor, Chief Executive Officer of the Engineering Development Board (EDB), told Express Tribune that Apple’s entry would follow a phased model similar to its expansion strategy in India, Indonesia and Malaysia.
“We have incorporated Apple’s key requirements into the proposed Mobile and Electronics Manufacturing Framework, which has been submitted for approval to Prime Minister Shehbaz Sharif,” Mansoor said.
Under the plan, Apple would initially refurbish two- to three-year-old iPhones for re-export markets. Officials project first-year re-exports of up to $100 million, describing the move as a stepping stone toward full-scale assembly.
Incentives Framework
Mansoor said Apple sought three principal incentives: discounted industrial land, permission to refurbish used devices, and an 8% performance-based incentive. Pakistan currently offers a 6% performance incentive to mobile manufacturers.
“We are raising the incentive to 8% to attract Apple and other global players,” he said.
Pakistan’s mobile assembly sector has expanded sharply since 2020. Data from the Pakistan Telecommunication Authority shows that local plants assembled more than 21 million mobile phones in 2023, compared with negligible output five years earlier. Higher regulatory duties on fully built imports have supported domestic assembly.
However, localisation remains limited. “Currently, localisation stands at around 12%,” Mansoor said. Manufacturers have committed to increasing it to 35% in the first year under the new framework and to 50% thereafter.
Authorities believe deeper local value addition could ease pressure on foreign exchange reserves, as Pakistan has imported billions of dollars in mobile components in recent years, according to data from the State Bank of Pakistan.
Export Levy and Technology Fund
The proposed policy also includes an export levy of up to 6% on high-end mobile phones priced above Rs100,000. Devices in the Rs50,000–Rs60,000 range would remain exempt. The levy is expected to generate Rs62 billion for a technology investment fund to promote localisation and research in electronics manufacturing.
The initiative forms part of Pakistan’s broader export diversification drive. Goods exports hovered around $30 billion in fiscal year 2024, with textiles accounting for more than half of earnings. Electronics exports remain marginal compared with regional peers.
India’s mobile phone exports surpassed $15 billion in fiscal year 2024 under its production-linked incentive scheme, according to official data, while Vietnam and Malaysia have emerged as key electronics manufacturing hubs.
Broader Investment Push
Mansoor said Pakistan is also expecting $557 million in fresh investment from Chinese companies in the mobile manufacturing sector, following memorandums of understanding signed during the prime minister’s recent visit to China.
The framework extends beyond smartphones to include laptops, tablets, smartwatches, trackers and wireless earbuds, aiming to position Pakistan as a competitive electronics export base.
Parallel efforts are under way in the electric vehicle sector. The government has allocated Rs9 billion this fiscal year to subsidise electric two-wheelers, financed through a 3% tax on conventional vehicles. Officials say collections have already exceeded targets, potentially paving the way for incentives for small electric cars.
If approved, the new framework would mark Pakistan’s most significant attempt yet to attract Apple into domestic manufacturing — a move officials say could signal a shift from import-dependent consumption toward export-oriented technology production.
