As of February 19, 2026, Apple is officially setting its sights on Pakistan. The tech giant plans to start iPhone manufacturing and refurbishing locally. This strategic move falls under the proposed Mobile and Electronics Manufacturing Framework. Prime Minister Shehbaz Sharif is currently reviewing this framework for final approval.
Local iPhone Manufacturing & The $100 Million Re-Export Strategy
Initially, Apple will focus on repairing and refurbishing 2 to 3 years old iPhones. The company will prepare these devices specifically for re-export. Consequently, this initial operation expects to generate $100 million in revenue during its very first year.
Reportedly, the Engineering Development Board (EDB) CEO Hamad Ali Mansoor shared these details. Furthermore, he noted that Apple successfully utilised this exact phased approach in India, Malaysia, and Indonesia. The company started by repairing older models before finally progressing to full local manufacturing.
Apple’s Demands & Government Incentives
To execute this plan, Apple’s management laid out specific conditions. They requested discounted land rates and an 8% performance incentive. Currently, the Pakistani government offers a 6% incentive to mobile makers. However, officials plan to increase this rate to 8% to officially secure Apple and other global brands. Special Assistant to the PM on Industries and Production, Haroon Akhtar Khan, fully supports this new electronics policy.
Broader Industry Impact & New Levies
Beyond Apple’s entry, the government expects a massive $557 million investment from Chinese mobile manufacturers. This influx stems directly from MoUs signed during the Prime Minister’s recent trip to Beijing. Ultimately, the new policy aims to transform Pakistan into a regional export hub for laptops, tablets, smartwatches, and other electronics.
To support these ambitious goals, phone manufacturers promised to increase local parts usage. They will jump from 12% to 35% in the first year. Following that, they aim for a 50% localisation target.
Therefore, the government plans to introduce an export levy of up to 6% to raise Rs. 62 billion. The state will reinvest this fund to accelerate localisation efforts. Importantly, this levy specifically targets high-end phones costing over Rs. 100,000. Meanwhile, phones priced between Rs. 50,000 and Rs. 60,000 remain completely exempt from the tax.
