Telecom operators are concerned about the Ministry of IT’s plan to offer smartphones on installments, saying it could have a negative effect on Pakistan’s digital growth. Telecom industry sources say that two of the four mobile operators have concerns about a policy requiring the blocking of all SIMs registered to defaulters.
They argue that this would restrict citizens’ digital access and harm digital inclusion. The opposing operators point out that in other countries, governments handle default-related losses, and they are unwilling to take on the risk without a proper system to recover potential losses.
The policy is still under discussion, with the Ministry of IT asking telecom operators to reach a consensus. While the framework has been finalized and shared with telecom companies, key concerns remain over enforcing SIM blocking for defaulters and the financial burden on operators.
Some telecom companies support the proposal, while others oppose a centralized system that would suspend all SIMs linked to a defaulter’s CNIC. They argue that operators should not be responsible for covering default risks or subsidy costs.
Initially drafted in November 2023, the policy was sent for cabinet approval in early 2024 but was returned for legal review. After the general elections, the revised version was presented to the new IT Minister, Shaza Fatima, who updated the draft with input from banks, fintech firms, and telecom operators.
Despite ongoing efforts to finalize the policy, disagreements among telecom operators continue to stall progress. Without a unified stance, the policy cannot be presented to the federal cabinet for approval.
IT Ministry officials clarify that the primary concern is not the installment-based smartphone scheme but the enforcement measures for defaulters. The IT Ministry and PTA can only move forward once the federal government provides clear guidelines.
Some telecom operators have suggested alternatives, such as requiring upfront payments or allowing higher interest rates to mitigate risks. However, the government remains unconvinced, arguing that similar high-interest installment plans for smartphones are already available in the market.