The government’s ambitious initiative to provide mobile phones on interest-free installments has encountered a significant hurdle due to disagreements among cellular mobile operators (CMOs). While the Ministry of Information Technology (IT) has finalized the policy and shared it with stakeholders, the lack of consensus on handling defaulters has stalled progress.

The primary point of contention lies in the proposed enforcement mechanism. The Ministry has suggested blocking SIM cards of defaulters as a deterrent, but this proposal has divided CMOs. Some operators support the idea, while others oppose it, particularly the concept of a centralized system that would block all SIMs registered under a defaulter’s national identity card (CNIC).

The smartphone financing policy, initially drafted in November 2023, has faced multiple delays. After being referred back for legal vetting by the Ministry of Law, a revised draft was presented to the new IT Minister, Shaza Fatima, following the general elections. The updated policy was shared with key stakeholders, including banks, fintech companies, and CMOs, but disagreements persist.

The initiative aims to expand digital access for financially constrained citizens by enabling them to acquire smartphones through installment plans. However, ensuring compliance with payment obligations remains a critical challenge. Without an effective enforcement mechanism, the program’s sustainability could be at risk.

The Pakistan Telecommunication Authority (PTA) is expected to play a central role in implementing the policy once approved. The Device Identification Registration and Blocking System (DIRBS) has been proposed as a tool to block defaulters’ mobile phones, marking a shift from reliance on mobile operators for enforcement. However, the policy’s fate remains uncertain until all stakeholders reach an agreement.

This program has the potential to bridge the digital divide and empower citizens, but its success hinges on resolving the current deadlock among CMOs and finalizing a robust enforcement strategy.