The Government of Pakistan has given green signal to a new policy to promote mobile and electronics manufacturing in the country. After this decision, the giant company Apple is now preparing to make its iPhone in Pakistan. The government has accepted Apple’s conditions and decided to give them cheaper land and better incentives. This step is being considered a big step towards making Pakistan a regional center in the field of electronics.
What is Apple’s complete plan in Pakistan?
Apple will work in Pakistan on the same model that it had adopted in countries like India and Vietnam. Instead of making new phones directly, the company will first focus on old models.
Initially, 2 to 3 years old iPhone models will be repaired and refurbished. These refurbished phones will be exported from Pakistan to other countries. A target has been set to earn 100 million dollars from exports in the first year. Gradually the company will start assembling the phones completely in Pakistan.
What changes happened in taxes and government incentives?
The government has made many major changes in its policies to woo mobile companies. The Engineering Development Board (EDB) has confirmed that Apple’s demands have been included in the new policy.
Details New rule or change Performance incentive increased from 6% to 8% iPhone 15 PTA tax reduced from Rs 60,000 to around Rs 31,640 iPhone 12 PTA tax reduced to Rs 22,500 Use of local parts will have to be increased from 12% to 35% in the first year
What will be the impact on the general public and the economy?
This decision is likely to reduce the prices of iPhones in the local markets of Pakistan. When phones are manufactured and repaired within the country, the burden of import duty will be reduced. Apart from this, the government will also impose an export levy of 6% on phones costing more than Rs 1 lakh, which will be used for the development of technology. Chinese companies have also joined hands to invest $557 million in this sector, which will create thousands of new jobs in the coming time.