In a bold move, the government of Pakistan is contemplating a proposal that would empower telecom companies to block the national identity cards of individuals who default on their loans while availing themselves of smartphone financing schemes. This comes as part of a broader initiative to provide easy installment options for smartphone buyers, but it is raising eyebrows and concerns regarding its potential consequences.
The Ministry of Information Technology and Telecommunication (MoITT) made the announcement on Thursday, revealing its intention to issue policy directives to kickstart a programme aimed at making smartphones more accessible through installment plans. However, the final verdict on this proposal is yet to be reached, and legal considerations loom large.
Caretaker Federal Minister for Information Technology and Telecommunication, Dr Umar Saif, expressed his eagerness to begin the process of providing smartphones to users in easy installments. Saif affirmed that a policy directive would be forwarded to the Pakistan Telecommunication Authority (PTA) in the coming days, marking a significant step forward. He made this announcement while leading a high-level meeting involving PTA, Cellular Operators, and GSMA.
The move has garnered support from various corners of the telecom industry. Jazz CEO, Aamir Ibrahim, lauded the initiative and emphasised that handset financing could be a game-changer in making smartphones accessible to all. He anticipates that a nationwide installment-based “smartphone for all” programme, backed by robust regulations, would accelerate digital and financial inclusion across Pakistan.
Ibrahim also highlighted Jazz’s prior efforts, such as the successful launch of the ‘Jazz Digit 4G’ installment-based handset financing programme last year and a recent collaboration with KistPay to provide customers with easier access to smartphones.
The IT minister provided further insights into the consultation process, noting that policy directives would be shaped by input from all stakeholders. Cellular operators, banks, and investment firms are eager to participate in offering smartphones through installments, but safeguarding against potential losses while providing these services to the public remains a priority.
Saif urged these entities to design smartphone installment packages with favourable terms and a focus on making these devices widely available. The unanimous decision to block defaulters’ phones aims to discourage defaults and foster greater smartphone adoption. This increased demand is anticipated to benefit the mobile phone manufacturing industry, the national economy, and offer new business opportunities for cellular operators to reach remote communities.
Saif highlighted the significance of connecting people to the digital world through the “Smartphones for All” policy, emphasising its importance for advancing commerce.
In an unexpected turn, a parliamentary delegation from the African nation of Rwanda, led by Senate President Dr Kalinda Francois, met with the caretaker federal minister of ITT. The meeting saw a comprehensive discussion on bilateral issues, information and communication technology, and Pakistan’s role in manufacturing mobile phones.
During the dialogue, Saif revealed that the Rwandan government has expressed a keen interest in importing locally manufactured smart mobile phones to Rwanda. This revelation suggests a burgeoning opportunity for Pakistani smartphone manufacturers to explore new markets beyond their borders.
Saif also noted the ongoing international discussions surrounding increased investment in Pakistan and the export of Pakistani products. African countries, like Rwanda, hold the potential to become significant markets for Pakistani smartphones, with the talks between Pakistan and Rwanda marking the initial step in this promising journey.
Published in The Express Tribune, November 3rd, 2023.
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