Progress on iPhone manufacturing in Pakistan, Apple shows interest

Apple has shown its in-principle willingness to start local manufacturing of iPhones in Pakistan, following the government’s proposed Mobile and Electronics Manufacturing Framework.

According to Hammad Ali Mansoor, CEO of the Engineering Development Board, the company had set three key conditions, which have been incorporated into the new policy. These include provision of land at a concessional price, 8 percent performance incentive (while existing manufacturers get 6 percent) and permission to repair two-to-three-year-old iPhones.

Under the policy, Apple will refurbish old iPhones in Pakistan and re-export them, which is expected to earn about $100 million in foreign exchange in the first year. The government aims to increase the use of local components in mobile phones from the current 12 percent to 35 percent first and 50 percent later.

Under the same plan, it is proposed to impose an export levy of up to 6% on phones worth more than Rs 100,000, from which approximately Rs 62 billion will be spent on promoting local technology manufacturing, while phones worth Rs 50,000 to 60,000 will be exempted from this levy.