The government’s plan to provide mobile phones on installments has hit a roadblock once again 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 major conflict remains over the blocking of SIM cards belonging to defaulters. Ministry officials have confirmed that all four CMOs have been urged to reach a consensus on the issue before moving forward.
According to IT Ministry officials, the primary challenge in implementing the policy is the lack of agreement on how to handle defaulters. The proposed solution of blocking SIM cards remains the only option under discussion, while blocking the defaulter’s national identity card (CNIC) has never been considered. Without a clear agreement from all stakeholders, the policy remains stalled.
The smartphone financing policy was originally drafted in November 2023 and sent to the cabinet division for approval in early 2024. However, the cabinet referred it back for legal vetting by the Ministry of Law. Following the general elections, the revised policy was presented to the new IT Minister, Shaza Fatima. A fresh draft was then prepared and shared with key stakeholders, including banks, fintech companies, and CMOs. While some mobile operators support the SIM-blocking proposal, others oppose it, particularly the idea of a centralized system that would block all SIMs registered under a defaulter’s CNIC.
The policy’s approval process requires consensus among CMOs before being submitted to the federal cabinet. If the cabinet grants approval, a policy directive will be issued, allowing the IT Ministry and the Pakistan Telecommunication Authority (PTA) to begin implementation. Officials emphasize that the key obstacle is not the provision of smartphones on installments but the enforcement mechanism against defaulters, which requires a clear policy directive from the federal government.
The installment-based mobile phone initiative aims to expand digital access for financially constrained citizens, enabling them to acquire smartphones through interest-free installment plans. However, the challenge remains in ensuring compliance with payment obligations while preventing potential misuse of the scheme. The inability to penalize defaulters effectively could undermine the program’s sustainability.
The PTA is expected to play a central role in enforcing the policy once approved. The Device Identification Registration and Blocking System (DIRBS) will be used to block defaulters’ mobile phones if the policy is finalized. This marks a shift from previous enforcement methods, which primarily relied on mobile operators. However, without consensus among all CMOs, the fate of the policy remains uncertain.
