Telecom operators in Pakistan are divided over the Ministry of IT’s proposed policy to provide smartphones on installments, with two of the country’s four mobile operators raising serious concerns about the initiative’s enforcement mechanisms.

The primary point of contention is a provision that would require blocking all SIM cards registered to customers who default on their smartphone payments. According to industry sources, the opposing telecom companies argue this approach would violate citizens’ digital rights and undermine Pakistan’s digital inclusion efforts.

“In other countries, governments absorb the financial burden of defaults, not telecom operators,” said a senior executive from one of the opposing companies who requested anonymity. “We cannot bear this risk without a feasible mechanism to offset potential losses.”

The policy, first drafted in November 2023, has faced several hurdles. After being sent for cabinet approval in early 2024, it was returned to the IT Ministry with instructions to get it vetted by the Law Division. Following the general elections, IT Minister Shaza Fatima prepared an updated draft incorporating input from banks, fintech firms, and telecom operators.

Despite these revisions, the lack of consensus among cellular mobile operators (CMOs) continues to delay progress. “Without agreement among operators, we cannot present the policy to the federal cabinet for final approval,” an IT Ministry official explained.

Ministry officials clarified that the main challenge isn’t the installment-based smartphone provision itself but rather the enforcement mechanism against defaulters. The Pakistan Telecommunication Authority (PTA) can only implement the policy once a clear directive is issued by the federal government.

Telecom operators opposing the plan have suggested alternatives, including allowing higher interest rates or requiring larger upfront payments to mitigate risks. However, government officials remain unconvinced, noting that high-interest installment plans for smartphones are already available in the market.