The government’s initiative to offer mobile phones on installment plans has encountered another setback due to disagreements among cellular mobile operators (CMOs). The Ministry of Information Technology (IT) has completed the policy and shared it with the operators, but a significant dispute persists regarding the proposal to block SIM cards of defaulters.
Officials from the Ministry informed that all four CMOs have been encouraged to agree on this matter before proceeding.
As per the IT Ministry officials, the main hurdle in executing the policy is the lack of consensus on how to address defaulters. The only solution currently under consideration is the blocking of SIM cards, while the option of blocking a defaulter’s national identity card (CNIC) has not been explored. Without a unified agreement from all parties involved, the policy remains at a standstill.
Initially drafted in November 2023, the smartphone financing policy was submitted to the cabinet division for approval in early 2024. However, it was sent back for legal review by the Ministry of Law.
After the general elections, the updated policy was presented to the new IT Minister, Shaza Fatima. A new draft was then created and shared with important stakeholders, including banks, fintech companies, and CMOs. While some mobile operators are in favor of the SIM-blocking approach, others are against it, especially the concept of a centralized system that would block all SIMs linked to a defaulter’s CNIC.
For the policy to be approved, a consensus among CMOs is necessary before it can be submitted to the federal cabinet. If the cabinet approves it, a directive will be issued, enabling the IT Ministry and the Pakistan Telecommunication Authority (PTA) to start implementation. Officials stress that the main challenge lies not in providing smartphones in installments but in establishing an enforcement mechanism against defaulters, which requires a definitive policy directive from the federal government.
The mobile phone initiative based on installment payments is designed to enhance digital access for citizens facing financial difficulties, allowing them to purchase smartphones through interest-free payment plans. Nonetheless, a significant challenge lies in ensuring that participants meet their payment commitments while also preventing any potential abuse of the program. If defaulters cannot be effectively penalized, the long-term viability of the initiative could be jeopardized.
Once the policy is approved, the Pakistan Telecommunication Authority (PTA) is anticipated to take a leading role in its enforcement. The Device Identification Registration and Blocking System (DIRBS) will be utilized to block the mobile phones of those who default on payments, should the policy be finalized. This represents a departure from earlier enforcement strategies that mainly depended on mobile operators. However, the future of the policy is still uncertain without agreement among all Cellular Mobile Operators (CMOs).
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