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Pakistan Drafts Policy to Attract Apple iPhone Production After In-Principle Refurbishing Deal

Officials say the plan awaits prime ministerial approval of a framework tailored to Apple's refurbishment-first entry.

Overview

  • The draft Mobile and Electronics Manufacturing Framework embeds Apple's requests for discounted land, an 8% performance incentive, and permission to repair two- to three-year-old iPhones; the draft has been sent to Prime Minister Shehbaz Sharif for approval.
  • Apple has agreed in principle to refurbish devices in Pakistan for re-export, with the government projecting $100 million in first-year revenue.
  • The proposal would raise the performance incentive for phone makers from 6% to 8% and sets localisation goals of 35% in year one, rising to 50%.
  • An export levy of up to 6% on handsets priced above Rs100,000 is planned to fund technology investment, with no levy on the Rs50,000–Rs60,000 tier.
  • Officials also cite $557 million in expected investment from Chinese manufacturers under recent MoUs and a push to broaden local output to laptops, tablets and wearables.