LAHORE: Pakistan is set to take a significant step in mobile phone manufacturing as American tech giant Apple Inc. prepares to begin operations in the country.
The move comes under the newly finalized Mobile and Electronics Manufacturing Framework, prepared by the Engineering Development Board (EDB), which is now awaiting approval from Prime Minister Shehbaz Sharif.
An EDB official told Pakistan TV Digital that Apple will begin its operations in Pakistan with the refurbishment of two to three-year-old iPhones for re-export. The government expects these refurbished exports to generate $100 million in the first year,
with the potential to reach $400 million annually over time.
The official added that initial commitments have already been agreed upon, with the Special Assistant to the Prime Minister also giving consent. Apple has requested three key conditions to operate in Pakistan: discounted land, an increase in the performance incentive from 6% to 8%, and formal policy backing for refurbishing older iPhones. The EDB has confirmed that all three conditions have been incorporated into the proposed framework.
Earlier, EDB Chief Executive Officer Hamad Ali Mansoor said, “This is a model Apple has followed in countries like Indonesia, Malaysia, and India, where they start with repairs, train local staff, and gradually move toward full-scale manufacturing. Pakistan is positioning itself to follow the same approach.”
To support local manufacturing, the government is establishing a Rs56 billion Technology Investment Fund, aimed at promoting the production of mobile phones and other electronic devices.
As part of the framework, the government also plans to introduce an export levy of up to 6%, which is expected to generate Rs62 billion. The proceeds will be used to accelerate localization efforts in phone manufacturing. Phones priced between Rs50,000 and Rs60,000 will be exempt, while the levy will apply to devices costing over Rs100,000.
Currently, only 12% of mobile phone components are produced locally. Under the new policy, manufacturers have committed to increasing
g local content to 35% in the first year, with a target of 50% in subsequent years.
The initiative is being overseen by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, alongside the Engineering Development Board and the Ministry of Industries and Production.
The EDB official also highlighted that Pakistan is expecting $557 million in investment from Chinese companies in mobile manufacturing, with Memoranda of Understanding signed during Prime Minister Sharif’s visit to Beijing.
The broader goal of the framework, the official noted, is to develop Pakistan’s capacity in mobile and electronics manufacturing, starting with refurbished iPhones and creating opportunities to expand into laptops, tablets, smartwatches, trackers, and earbuds.
The framework has already been reviewed in a high-level meeting and will now be submitted to the Prime Minister for final approval.
If implemented, this initiative could mark a significant step in strengthening Pakistan’s mobile manufacturing and repair capabilities, while increasing local content and technology investment in the sector.
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