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Apple iPhone manufacturing in Pakistan as a potential shift in the country’s industrial policy. Reports indicate that Apple Inc. plans to begin iPhone production under a new Mobile and Electronics Manufacturing Framework backed by the federal government. The policy offers an 8 percent performance incentive and discounted land to attract global manufacturers. Officials expect Apple to start by refurbishing two to three year old iPhones for re export before moving into full scale assembly. The government projects $100 million in export proceeds in the first year from refurbishment alone. Apple has applied a similar phased model in India, Malaysia, and Indonesia. This approach reduces early capital risk and tests supply chain readiness before deeper investment.
Incentives, Localization, and Export Targets
Apple iPhone manufacturing in Pakistan depends on incentive structure and local capacity growth. The new framework proposes increasing performance incentives from 6 percent to 8 percent. It also introduces an export levy of up to 6 percent on high end mobile phones to fund technology development. Authorities expect this levy to generate Rs. 62 billion. Lower priced phones in the Rs. 50,000 to Rs. 60,000 range will remain exempt, which protects domestic consumers in mid tier segments.
Manufacturers have committed to increasing local component usage from 12 percent to 35 percent within the first year, with a longer term target of 50 percent. This shift matters. Local sourcing reduces import bills and creates supplier networks inside Pakistan. Chinese firms have reportedly pledged around $557 million in mobile manufacturing investment following recent agreements in Beijing. If executed, this inflow could support printed circuit boards, battery assembly, and accessory production. The policy also targets laptops, tablets, wearables, and accessories to build a broader electronics base rather than a single product line.
Broader Industrial Impact and Near Term Outlook
Apple iPhone manufacturing in Pakistan also connects with wider economic reforms. The government has already introduced a 40 percent subsidy for electric two wheelers backed by Rs. 9 billion in funding. Officials now consider extending support to electric four wheelers with proposed price targets between Rs. 0.7 million and Rs. 0.8 million. These parallel initiatives suggest a coordinated push to expand advanced manufacturing across electronics and mobility.
The near term outlook depends on policy approval and execution speed. Senior leadership reportedly supports the framework, but investors will assess regulatory stability, energy supply, and logistics efficiency before committing capital. Apple typically requires strict quality control and consistent supply chains. Refurbishment operations could begin sooner because they demand less industrial scale than new device assembly. If refurbishment meets export targets, Pakistan could strengthen its case as a regional hub. If incentives remain stable and localization targets progress from 12 percent to 35 percent, the country could attract deeper assembly and component production over time.
From our editorial perspective at SquaredTech.co, this initiative represents a calculated attempt to shift Pakistan from an import heavy smartphone market to an export focused manufacturing base. Execution will determine whether Apple iPhone manufacturing in Pakistan becomes a headline or a structural transformation.
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