The Engineering Development Board (EDB) of Pakistan has unveiled a transformative “Mobile and Electronics Manufacturing Framework,” marking a historic milestone as global tech giant Apple prepares to begin manufacturing and refurbishing iPhones within the country.
The proposed policy, awaiting final approval from Prime Minister Shehbaz Sharif, aims to position Pakistan as a regional hub for high-tech exports. The framework introduces specialized incentives designed to attract Tier-1 global manufacturers, including a 2% increase in the current performance incentive, bringing it to 8% for industry leaders.
The Federal Minister for IT and Telecom, Syed Aminul Haque, has unveiled plans to entice Apple to invest in Pakistan. During discussions surrounding mobile manufacturing policy, minister disclosed that Pakistan has already attracted Samsung and Nokia to establish assembly plants. pic.twitter.com/DVFKLwG0xy
— Startup Pakistan (@PakStartup) August 9, 2023
Key Highlights of the Agreement with Apple
- Localized Manufacturing: Apple will commence local production, following a proven training model used in Indonesia and Malaysia.
- Global Refurbishment Hub: A dedicated facility will repair and refurbish two-to-three-year-old iPhones for re-export, with an expected revenue of $100 million in the first year alone.
- Resource Allocation: The government has agreed to provide land at discounted rates and localized support to facilitate rapid operational scaling.
Broadening the Industrial Horizon Beyond the entry of Apple, EDB CEO Hamad Ali Mansoor confirmed that the policy has already secured significant interest from other global players. “We are expecting $557 million in investment from Chinese firms following the Prime Minister’s recent visit to Beijing,” Mansoor stated. The framework is designed to spark a domino effect, bringing localized production for laptops, tablets, wearable technology, and audio devices.
Driving Localisation and Sustainability The government is mandating a shift from assembly to true manufacturing. Current localization of mobile parts stands at 12%, with a target to reach 35% in the first year and 50% shortly thereafter. To fund this technological transition, a tiered export levy will be introduced on premium handsets (above Rs100,000), projected to generate Rs62 billion for a dedicated technology investment fund.
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The Green Revolution
Affordable EVs In a parallel move toward sustainable transport, the government is expanding its successful e-bike subsidy program. Following a collection of Rs12 billion in specialized taxes, the state plans to subsidize electric four-wheelers. A Lahore-based plant is currently being established to produce electric vehicles priced between Rs700,000 and Rs800,000, aiming to make green mobility accessible to the general public.
“This policy is about more than just phones; it is about digitizing our industrial process and ensuring transparency through every stage of manufacturing,” added Mansoor.
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