Apple Manufacturing in Pakistan: American tech company Apple is going to start manufacturing iPhone in Pakistan. Not us, but this has been revealed in a report published in Pakistani media on Thursday. It was reported in the report that the government of Shahbaz Sharif in Pakistan has agreed to give incentives under the proposed mobile and electronics manufacturing framework.
The report claimed that Apple has agreed to manufacture iPhone in Pakistan because the government of Pakistan has agreed to give both incentives and land to the company at a very low price. Later when investigation was done, this report was found to be fake.
The truth is that Apple will not make iPhones in Pakistan, but under the new framework, a refurbishment unit will be created by the company for re-export. In this unit, 2-3 year old iPhones will be repaired and re-exported. Its objective is to increase the use of local equipment in iPhone from 12 percent to 35 percent. This is an effort to establish Pakistan as a regional mobile electronics hub.
What was Apple’s demand from Shahbaz government?
According to a report published in The Express Tribune, the Apple management demanded from the Shahbaz government to provide land at a discounted rate, 8 percent performance incentive and repair of two to three year old iPhones.
Engineering Development Board CEO Hamad Ali Mansoor told the newspaper, “We have included these three conditions in the new proposed mobile and electronics manufacturing framework, which will be approved by Prime Minister Shehbaz Sharif.” He said that Apple had entered Indonesia, Malaysia and India with this model, where it started repairing two to three year old iPhones, the purpose of which was initially to train the local manpower and later to start manufacturing the handset.
Government scheme to attract investors
The government of Pakistan currently gives 6 percent incentive to mobile manufacturers, but to attract other global investors like Apple, there is a proposal to increase it to 8 percent. This scheme is especially for those mobile phones which will be assembled in Pakistan and exported to other countries. This will provide foreign currencies to the country, which will improve the economy.
Performance Incentive is a scheme in which the government gives financial benefits like tax exemption or cashback to the company on the basis of higher production and better performance. This benefit is available only when the company meets the targets set for production.
According to the Express Tribune report, if Apple is allowed to refurbish and re-export, it is estimated to generate revenue of $ 100 million in the first year. It is being told that the government is preparing to approve it and according to recent reports, Pakistan’s Engineering Development Board (EBD) has prepared the draft of ‘Mobile and Electronics Devices Manufacturing Policy 2026-33’, which is now subject to the approval of the Prime Minister.
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