Pakistan is exploring policy incentives to attract iPhone manufacturing from Apple, positioning itself as a potential new node in the electronics production network. The proposal comes as Apple continues to expand assembly operations beyond China into other parts of Asia.
For Pakistan, landing even partial iPhone assembly would represent a major industrial milestone.
Why Apple’s Supply Chain Is Shifting
Apple has been gradually diversifying its production footprint over the past several years.
Rising geopolitical tensions, pandemic-era disruptions, and concentration risks have prompted the company to expand manufacturing capacity into markets such as India and Southeast Asia.
The goal is not necessarily relocation but redundancy — reducing reliance on any single geography.
If Pakistan succeeds in attracting iPhone assembly, it would join a small group of countries hosting high-value consumer electronics manufacturing.
What Incentives Might Include
Countries competing for advanced manufacturing typically offer:
- Tax holidays or reduced corporate rates
- Export subsidies
- Infrastructure support
- Streamlined regulatory approvals
- Training and workforce development programs
Pakistan’s proposed framework reportedly aims to make the country cost-competitive relative to regional peers.
However, infrastructure reliability, political stability, and supply chain integration remain critical considerations for multinational firms.
Regional Competition
South Asia is emerging as a manufacturing alternative in global electronics.
India has already expanded its iPhone assembly capacity, supported by production-linked incentives and large domestic demand.
Pakistan faces a more complex environment, including energy supply challenges and macroeconomic volatility.
Yet its large workforce and geographic proximity to existing Asian supply routes could present advantages if structural constraints are addressed.
Economic and Strategic Implications
Attracting Apple would bring more than jobs.
Electronics assembly can catalyze supplier ecosystems, logistics improvements, and export growth.
For Pakistan’s policymakers, such a move aligns with broader industrial modernization goals.
For Apple, expansion decisions hinge on risk assessment, cost structure, and execution reliability.
Diversification is a long-term process rather than a single investment announcement.
The Bigger Picture
The global technology supply chain is entering a more distributed era.
Companies are balancing efficiency with resilience.
Pakistan’s outreach to Apple underscores how emerging economies are seeking to reposition themselves within this evolving landscape.
Whether the incentive framework translates into tangible investment will depend on negotiations, infrastructure readiness, and Apple’s broader strategic roadmap.
But the ambition itself signals a shifting geography of high-tech manufacturing.
