American technology major Apple is set to begin manufacturing iPhones in Pakistan after the government agreed to extend incentives under a new policy framework, according to an Islamabad-based media report on Thursday.Apple had earlier entered Indonesia, Malaysia and India using a similar model, starting with repairing two to three-year-old iPhones to train local manpower before moving to full-scale manufacturing, Engineering Development Board (EDB) Chief Executive Officer (CEO) Hamad Ali Mansoor told The Express Tribune.iPhones to be made in Pakistan under these conditions:Apple management has sought the provision of land at discounted rates and an 8% performance incentive. The company also plans to initially repair two to three-year-old iPhones.The company has also agreed to refurbish iPhones in Pakistan for re-export under the new policy. The government expects to earn $100 million in the first year from the re-export of refurbished devices.“We have included these three conditions in the new proposed Mobile and Electronics Manufacturing Framework to be approved by Prime Minister Shehbaz Sharif,” Mansoor said.At present, the government provides a 6% performance incentive to existing mobile phone manufacturers. This will be increased to 8% to attract Apple and other global players.Mansoor added that Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan and the secretary of industries had extended full support to the new mobile and electronics policy.“We are also expecting investments of $557 million from Chinese companies in mobile manufacturing,” the EDB CEO said, adding that memorandums of understanding (MoUs) were signed during PM Shehbaz Sharif’s visit to Beijing.He said the new policy is expected to draw investment into the manufacturing of laptops, tablets, watches, trackers and earbuds as well.The government aims to position Pakistan as a regional hub for mobile and electronics exports.“The new policy has been framed while looking at this objective,” he remarked.“We are focusing on localisation of mobile phones and electronics,” Mansoor said, adding that manufacturers have assured the government they will increase the use of local parts to 35% in the first year, which would later rise to 50%.Currently, localisation in phone manufacturing stands at 12%, the report noted. To support this push, the government plans to impose an export levy of up to 6% under the new framework to generate funds for technology investment.“There will be no export levy on phones costing PKR 50,000 to PKR 60,000,” the CEO said, adding that the levy will apply to phones priced above PKR 100,000.