Short answer: Pakistan has prepared a policy to attract Apple and other electronics manufacturers, and officials have reportedly discussed refurbishing two- to three-year-old iPhones for re-export. But as of August 18, 2026, there is no public confirmation that Apple has begun making new iPhones in Pakistan. The widely repeated $100 million figure refers to estimated first-year export proceeds from refurbished devices—not Apple’s investment in a factory.
What Pakistan has actually announced
Pakistan’s Engineering Development Board and Ministry of Industries and Production prepared a Mobile & Electronic Devices Manufacturing Policy 2026–33. The framework is designed to increase local assembly, manufacturing, exports, employment, technology transfer and component localization, with the stated ambition of making Pakistan a regional electronics hub.
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The ministry said the framework was ready to be presented to Prime Minister Shehbaz Sharif for approval. Its announcement says global companies, including Apple and Samsung, would be invited to establish plants. That is a government policy proposal and an invitation—not evidence of an accepted Apple investment, a signed production contract or an operating factory. See the Ministry of Industries and Production announcement.
| Stage | What it means | Current evidence |
|---|---|---|
| Policy proposal | Pakistan sets incentives and rules to attract manufacturers | Prepared by the EDB; ministry said it awaited prime-minister presentation and approval |
| Invitation | Government asks companies to consider establishing operations | Apple and Samsung were named as prospective participants |
| Company commitment | A named company signs an agreement or announces investment | No public Apple commitment identified |
| Production | A facility is equipped, qualified and shipping products | Pakistan Customs said Apple phones were not locally manufactured in its July 2026 clarification |
What the proposed Apple first phase involves
Reports citing EDB officials describe a possible initial operation that would refurbish iPhones approximately two to three years old and re-export them. The reported rationale is to train local workers and develop capabilities in diagnostics, parts handling, testing, quality control and export logistics before considering more complex assembly or manufacturing.
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That description comes from Pakistani officials and secondary reporting, not from a public Apple announcement. It should therefore be read as a reported proposal or plan. Refurbishing used devices is not the same as producing new iPhones, and a contractor’s facility would not necessarily be an Apple-owned factory. The reported account is available from ProPakistani.
What the $100 million target means
The headline figure is frequently misread. Reports associate $100 million with expected first-year export proceeds from refurbished iPhones. It is not described as:
- Apple’s capital investment;
- the cost of a Pakistani manufacturing plant;
- Pakistan’s investment in Apple;
- the value of newly manufactured iPhones;
- a guaranteed Apple sales target; or
- a signed contract value.
Some coverage also mentions a possible $300 million–$400 million a year in the longer term. The ministry’s broader statement concerns refurbished mobile-phone re-exports generally, not a confirmed Apple-only revenue commitment. The distinction is important: export proceeds are gross sales value, not profit or factory investment. The figures and proposed incentive details are reported by The Economic Times.
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Has Apple started making new iPhones in Pakistan?
Not publicly verified as of August 18, 2026. Three facts point to that conclusion:
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- The official ministry wording says Apple would be invited to establish a plant; it does not say Apple accepted the invitation or started production.
- Pakistan Customs stated in July 2026 that Apple iPhones and Google Pixel phones were not manufactured locally at that time. Read the Pakistan Customs clarification.
- Apple’s public Newsroom and iPhone archive contain announcements about suppliers, repair and manufacturing initiatives elsewhere, but no Pakistan production announcement was identified.
Accordingly, “Pakistan wants to attract Apple” and “officials described a refurbishment plan” are supportable statements. “Apple has opened a Pakistani iPhone factory” and “iPhone production has begun” are not.
Why refurbishment could come before manufacturing
Full iPhone production requires a large, qualified supply network—not merely a final-assembly building. It involves precision components, supplier audits, testing systems, data and intellectual-property controls, environmental and labor compliance, secure logistics and consistent export procedures.
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Refurbishment generally requires less capital and a simpler supply chain. It can help establish:
- diagnostic and repair expertise;
- parts traceability and inventory controls;
- functional testing and quality assurance;
- worker training and management systems; and
- export documentation and logistics capability.
Pakistani officials compared this staged approach with operations in India, Malaysia and Indonesia. That comparison is an official explanation of the proposed sequence, not proof that Apple has committed to an identical arrangement in Pakistan.
Pakistan already assembles phones—but not Apple iPhones
Pakistan has an existing mobile-device assembly sector. Customs data reported by Dawn indicate that roughly four-fifths of FY2025–26 mobile-phone import value consisted of CKD and SKD kits used by registered assemblers, while finished complete-built-unit devices represented a smaller share. The country imported about 32 million mobile phones worth roughly Rs520 billion during that fiscal year.
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That infrastructure could support additional brands or refurbishment work, but it does not show that Apple participates in the current local assembly market. Customs specifically said Apple devices were not locally assembled or manufactured in the period covered by its clarification. Importing finished iPhones is also not evidence of local production.
Would Pakistan-made or refurbished iPhones be cheaper?
There is no basis yet for promising lower prices. A local operation could reduce some labor, shipping or handling costs, and component or re-export rules could affect its economics. But consumer pricing also reflects Apple’s global pricing strategy, imported components, software and warranty support, taxes, distributor margins, exchange rates and registration requirements.
A refurbishment operation may be export-oriented rather than intended to supply Pakistani shops. Local assembly does not automatically mean locally made components, tax-free sales or lower retail prices. Pakistan Customs gave time-sensitive examples of approximately Rs150,000 in duties and taxes for a commercially imported iPhone, versus about Rs190,000 through passport registration and Rs210,000 through CNIC registration. Those amounts vary by model, valuation and rules; they should not be treated as a universal price schedule.
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Incentives under discussion
Reported conditions for attracting manufacturers included discounted land, policy support for refurbishing older iPhones and re-exporting them, and a proposed increase in a mobile-manufacturing performance incentive from 6% to 8%. These were reported as elements of the proposed framework. They should not be presented as legally operative benefits already granted to Apple or as terms of a finalized contract.
What would confirm a real Apple operation?
Readers can distinguish a policy announcement from an operating facility by looking for several independent milestones:
- Prime-minister approval and publication of the policy framework.
- A named Apple entity, contractor or authorized manufacturing/refurbishment partner.
- A signed memorandum, investment agreement or government notification.
- An identified site, operating company and regulatory approvals for used-device imports, data security and re-export.
- Construction or fit-out, equipment installation and hiring.
- Apple supplier qualification, audits and quality certification.
- Evidence of pilot production or refurbishment shipments.
- An Apple statement or confirmation from a clearly identified Apple-authorized partner.
- Customs records showing locally assembled or refurbished Apple units.
Until multiple milestones are documented, the story remains a policy and investment prospect rather than a completed manufacturing launch.
What this could mean for Pakistan
Potential benefits
- Export earnings and foreign-currency receipts.
- Skilled technical employment and repair expertise.
- Supplier development and quality-control capabilities.
- Formalization of parts of the used-device trade.
- A stronger signal to other multinational electronics companies.
Constraints and risks
- Policy instability and changing tax or import rules can deter major brands; Pakistani phone makers have previously demanded consistent government policy. See Dawn’s industry report.
- Foreign-exchange, repatriation and component-import risks could affect the business case.
- Apple-level quality, security, environmental and labor requirements are demanding.
- High domestic taxes and registration costs could limit local demand even if export operations succeed.
- Announced export projections can arrive before contracts, facilities and shipments exist.
How to read future headlines
Use these categories when evaluating new claims:
- Confirmed: Apple statement, signed public agreement, named authorized partner, operational facility or verifiable production evidence.
- Reported but unconfirmed: statements by EDB or other officials, media reports describing refurbishment, or a government invitation.
- Misleading unless new evidence appears: “Apple has started iPhone manufacturing,” “Apple is investing $100 million,” “Pakistan-made iPhones are now available,” or “the $100 million is a factory target.”
Bottom line
Pakistan has a serious industrial-policy initiative and officials have described a possible Apple-related refurbishment and re-export operation. But the accurate description is refurbishment first, manufacturing only as a future possibility. The $100 million is an expected first-year export-proceeds estimate for refurbished devices, not Apple’s factory investment, and public evidence does not yet show that new iPhones are being manufactured in Pakistan.
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