ISLAMABAD (Kashmir English): American tech company Apple is set to begin manufacturing iPhones in Pakistan under the government’s new policy prepared by the Ministry of Industries and Production, the local publication reported.
Under the proposed Mobile and Electronics Manufacturing Framework, the government has agreed to offer incentives such as land at discounted rates, 8% concessions, and plans to repair two to three-year-old iPhones.
Apple has also agreed to refurbish older iPhones in Pakistan for re-export under the new framework. The government expects $100 million from the re-export of refurbished iPhones in the first year.
Apple plans to refurbish two to three-year-old iPhones, similar to its model in Indonesia, Malaysia, and India, initially aimed at training the local manpower and later began manufacturing those phones.
Performance incentive
As per details, the government is already giving a 6% performance incentive to the existing mobile phone manufacturers.
However, it is going to be increased to 8% to attract Apple and other global manufacturers.
The framework also aims to boost local component usage from the current 12% to 35% initially, with a target of 50%, and is expected to attract investment in laptops, tablets, wearables, and mobile parts, including $557 million from Chinese companies.
Engineering Development Board (EDB) Chief Executive Officer Hamad Ali Mansoor said that Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan and secretary industries had extended full support to the new mobile and electronics policy.
The government wants to make Pakistan a regional hub of mobile and electronics exports. “The new policy has been framed while looking at this objective,” he remarked.
