Apple Set to Commence iPhone Production in Pakistan
The American technology behemoth, Apple Inc., is on the verge of launching iPhone manufacturing operations in Pakistan.
This pivotal development follows the government’s decision to extend various incentives under a newly proposed Mobile and Electronics Manufacturing Framework.
In conjunction with this initiative, Apple has committed to refurbishing pre-owned iPhones within Pakistan—subsequently re-exporting them to global markets.
Authorities anticipate that this venture will yield approximately $100 million in revenue during the inaugural year, as reported by The Express Tribune.
To facilitate this expansion, Apple has expressed interest in acquiring land at concessionary rates alongside a performance-based incentive of 8 percent. The initial phase will predominantly focus on repairing iPhones that have been in circulation for two to three years.
“We have encompassed these three stipulations within the proposed Mobile and Electronics Manufacturing Framework, which awaits the approval of Prime Minister Shehbaz Sharif,” elaborated Hamad Ali Mansoor, Chief Executive Officer of the Engineering Development Board (EDB).
At present, the government offers a 6 percent performance incentive to mobile manufacturers, a figure poised to rise to 8 percent to entice Apple and other foreign enterprises.
Strategic Approach Employed by Apple
Mansoor mentioned that Apple has implemented a similar approach in Indonesia, Malaysia, and India, where it commenced operations by repairing older iPhones.
This strategy serves to equip local workers with vital skills prior to ramping up to full-scale manufacturing efforts.
He further noted that Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, along with the industries secretary, has expressed unequivocal support for the new policy.
Broader Investment Plans
Moreover, the EDB head indicated that the government is projecting an influx of around $557 million from Chinese enterprises within the mobile manufacturing sector. This projection follows the signing of memorandums of understanding during Prime Minister Shehbaz Sharif’s visit to Beijing.
Officials are optimistic that the revamped framework will also attract investments in an array of electronic devices, including laptops, tablets, smartwatches, trackers, and earbuds.
The overarching ambition is to establish Pakistan as a regional hub for electronics exports. “This policy has been designed with that objective in mind,” asserted Mansoor.
Additionally, the government aims to escalate the utilization of domestically produced components in mobile devices.
Mansoor stated that manufacturers have assured authorities that localization levels will increase to 35 percent in the first year, with aspirations to reach 50 percent subsequently, up from the current 12 percent.
A proposed export levy of up to 6 percent aims to generate funds earmarked for technological investments, with expectations to amass ₹62 billion to enhance local production capabilities.
“Devices priced between PKRs 50,000 and PKRs 60,000 will be exempt from this levy,” clarified the CEO, indicating that the charge would be applicable only to devices costing above PKRs 100,000.
Advancing Electric Mobility
In a parallel initiative, the government is actively promoting electric two-wheelers, having allocated PKRs 9 billion to provide a 40 percent subsidy.
To finance this initiative, a tax of up to 3 percent has been levied on the gross sales value of both locally manufactured and imported conventional vehicles.
Officials affirm that these integrated measures are strategically aimed at bolstering Pakistan’s manufacturing foundation and expanding its footprint within global technology supply chains.
Source link: Hindustantimes.com.
