India, Feb. 19 -- American tech giant Apple is preparing to begin iPhone production in Pakistan after the government agreed to extend incentives under a proposed Mobile and Electronics Manufacturing Framework.

Under the same framework, Apple has also agreed to refurbish used iPhones in Pakistan and export them to international markets. Officials expect the re-export of refurbished devices to generate around $100 million in the first year, The Express Tribune reported.

Apple has reportedly sought land at concessional rates along with an 8 per cent performance-based incentive. The company also plans to start by repairing iPhones that are two to three years old.

"We have included these three conditions in the new proposed Mobile and Elect...