Government’s Smartphone Financing Plan Stalls Due to Disagreements Among Telecom Operators

The government’s plan to provide smartphones on installment has once again encountered a setback due to disagreements among cellular mobile operators (CMOs). The Ministry of Information Technology (IT) has finalized the policy and shared it with mobile operators, but a significant dispute remains regarding blocking the SIM cards of defaulters.

According to the ministry, all four CMOs have been urged to reach a consensus on this matter before moving forward. The key challenge in implementing the policy is the lack of agreement on how to handle defaulters. The proposed solution of blocking SIM cards is being discussed, but blocking defaulters’ National Identity Cards (CNIC) has not been considered. Without clear consensus from all stakeholders, the policy is at a standstill.

The smartphone financing policy was originally developed in November 2023. After the general elections, a revised version was presented to the new IT Minister Shiza Fatima, and a new draft was created, shared with key stakeholders including banks, fintech companies, and CMOs. While some mobile operators support the idea of blocking SIM cards, others oppose it.

For the policy to be presented to the federal cabinet for approval, an agreement among CMOs is necessary. If the cabinet approves, instructions will be issued, allowing the Ministry of IT and the Pakistan Telecommunication Authority (PTA) to begin implementation.

Officials emphasize that the main obstacle is not the provision of smartphones on installments but the enforcement mechanism for defaulters, which requires clear policy instructions from the federal government.

The installment-based smartphone initiative aims to increase digital access for financially constrained citizens, allowing them to obtain smartphones through interest-free installment plans. However, challenges remain in preventing the misuse of the scheme and ensuring compliance with payment responsibilities. Failure to effectively penalize defaulters could undermine the sustainability of the program.

Once the policy is finalized, the Device Identification Registration and Blocking System (DIRBS) will be used to block the mobile phones of defaulters, marking a shift from previous enforcement methods that largely relied on mobile operators. However, without agreement among all CMOs, implementing the policy remains impossible.