The Pakistani government has reached an important agreement with Apple Inc. to start manufacturing and refurbishing iPhones in the country. This step is part of a new Mobile and Electronics Manufacturing Framework that will soon be presented for approval to Prime Minister Shehbaz Sharif.
Under the new plan, Apple will first begin by repairing and refurbishing two to three-year-old iPhones in Pakistan. These refurbished phones will then be exported to other countries. The government expects to earn around $100 million in the first year through the re-export of these devices.
According to Engineering Development Board (EDB) CEO Hamad Ali Mansoor, Apple has asked for three main conditions. These include land at discounted rates, an 8% performance incentive, and permission to repair older iPhones. He said these conditions have been included in the proposed policy.
Currently, the government offers a 6% performance incentive to mobile phone manufacturers. However, this will be increased to 8% to attract Apple and other international companies.
Mansoor explained that Apple used a similar model in countries like Indonesia, Malaysia, and India. The company first started with repairing older phones to train local workers. Later, it moved towards full manufacturing.
The government also expects $557 million in investment from Chinese companies in the mobile manufacturing sector. Several agreements were signed during the prime minister’s recent visit to Beijing.
Officials believe the new policy will also encourage the production of laptops, tablets, smartwatches, trackers, and earbuds. The main goal is to turn Pakistan into a regional hub for mobile and electronics exports.