Apple is planning to start iPhone manufacturing in Pakistan under a new government-backed Mobile and Electronics Manufacturing Framework, in a move aimed at positioning the country as a regional export hub, reported Express Tribune.

The government has agreed to offer incentives, including an 8 percent performance incentive and provision of land at discounted rates, to attract the tech giant, said the report.

In addition to manufacturing, Apple has also agreed to refurbish used iPhones in Pakistan for re-export, with the government expecting $100 million in export proceeds in the first year.

The plan is part of a broader strategy to bring global technology companies into Pakistan by offering competitive incentives and building local manufacturing capacity.

Officials said Apple intends to initially focus on repairing two to three-year-old iPhones, a model it has previously implemented in countries such as India, Malaysia, and Indonesia, before moving into full-scale manufacturing.

The new framework proposes increasing performance incentives from the current 6 percent to 8 percent to attract investment from Apple and other international manufacturers.

Authorities said the policy has received support from senior government leadership and is expected to be approved soon. The government is also targeting wider investment in the electronics sector, including laptops, tablets, wearables, and accessories, as part of its long-term industrial strategy.

Chinese companies are expected to invest around $557 million in mobile manufacturing, following agreements signed during the Prime Minister’s recent visit to Beijing.

As part of the localization push, manufacturers have committed to increasing the use of locally produced components from the current 12 percent to 35 percent in the first year, with a longer-term target of 50 percent.

The policy also proposes an export levy of up to 6 percent on high-end mobile phones to fund technology development, with an expected collection of Rs. 62 billion. Lower-priced phones in the Rs. 50,000 to Rs. 60,000 range will remain exempt.

Separately, the government is expanding its electric vehicle policy. A subsidy of 40 percent has already been introduced for electric two-wheelers, backed by Rs. 9 billion in funding.

The report said the scope may now be extended to electric four-wheelers, with plans underway to introduce low-cost vehicles priced between Rs. 0.7 million and Rs. 0.8 million.