Islamabad, Mar 28, 2025: Telecom companies have raised concerns regarding the Ministry of IT’s initiative to introduce a smartphone installment plan, arguing that the policy could have adverse effects on Pakistan’s digital landscape.
Industry insiders reveal that two out of four major telecom operators have voiced objections to a specific clause that mandates blocking all SIM cards registered under defaulters’ names.
These telecom providers argue that enforcing such a restriction would infringe on citizens’ digital rights and hinder the country’s progress toward digital inclusivity.
They emphasize that in other nations, governments take responsibility for handling default-related financial risks rather than shifting the burden onto telecom operators.
Without a viable mechanism to compensate for potential losses, telecom companies are reluctant to support the plan.
The proposal is still under discussion as the Ministry of IT seeks industry-wide consensus.
While the framework has been shared with telecom firms, the primary points of contention include the compulsory SIM-blocking system for defaulters and the financial liability that service providers may have to shoulder.
Some operators back the initiative, while others strongly oppose implementing a centralized mechanism that would deactivate all SIMs linked to a defaulter’s CNIC.
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Another major concern raised by telecom companies is the expectation that they absorb default risks or cover subsidy costs.
The government drafted the initiative in November 2023 and sent it for cabinet approval in early 2024.
However, the cabinet returned it to the IT Ministry with instructions to obtain legal vetting from the Law Division.
After the general elections, the newly appointed IT Minister, Shaza Fatima, reviewed the revised policy and incorporated feedback from financial institutions, fintech firms, and telecom operators to refine the proposal.
Despite ongoing revisions, a lack of agreement among cellular mobile operators (CMOs) continues to stall progress.
Without mutual consent, the policy cannot proceed to the federal cabinet for final approval.
According to IT Ministry officials, the primary obstacle is not the installment-based smartphone scheme itself but the enforcement mechanism against defaulters.
The IT Ministry and the Pakistan Telecommunication Authority (PTA) can only implement the policy once a formal directive is issued by the federal government.
Operators opposing the proposal have suggested alternative approaches, such as allowing higher interest rates or upfront payments to minimize financial risks.
However, the government remains skeptical, arguing that installment-based smartphone purchase options with interest rates are already available in the market.
The debate continues as stakeholders work toward a resolution that balances financial feasibility with digital accessibility.
