Pakistan’s plan to expand smartphone ownership through installment financing continues to face regulatory and credit assessment challenges. A joint proposal from the country’s four major telecom operators has yet to receive a final framework.
Jazz, PTCL/Ufone, Telenor, and Zong submitted a joint letter to the Pakistan Telecommunication Authority (PTA) on May 7, 2026. They called for rules to support smartphone financing and address repayment defaults. The proposal also suggested SIM blocking as a last resort, subject to customer consent and consumer protection measures.
However, industry sources say the framework remains under discussion. This leaves questions about repayment recovery and customer protections unresolved. The issue is important as millions of Pakistanis still lack access to mobile internet.
Pakistan’s Mobile Internet Usage Gap Remains Wide
According to the Pakistan Bureau of Statistics’ Household Integrated Economic Survey 2024–25, only 50% of people aged 10 and above owned a mobile phone. Ownership reached around 70% among males but stood at just 30% among females.
Similarly, a GSMA report published in August 2025 highlighted Pakistan’s mobile internet usage gap. Mobile broadband networks covered around 80% of the population. However, only 30% used mobile internet in 2024.
High smartphone prices remain a major barrier, particularly for lower-income households. Import dependence, duties, and taxes further increase device costs. Although installment plans can make purchases easier, many buyers lack formal income records or credit histories.
Companies such as Kistpay already offer smartphones through installment plans, including partnerships with telecom operators. However, expanding these services to informal workers remains difficult. Financing providers often struggle to assess repayment capacity and manage defaults.
Open Banking Could Help Expand Smartphone Financing
A separate regulatory move could help address some of these challenges. The State Bank of Pakistan (SBP) released its draft Open Banking Regulations for public consultation on October 30, 2026.
The proposed framework would allow secure, consent-based sharing of customers’ financial information. If implemented, financing providers could use verified transaction records to assess applicants. This could reduce their reliance on traditional credit histories and documented salaries.
The approach may benefit people who regularly use digital payments but lack formal borrowing records. However, its impact will depend on the final regulations and participation from authorized financial institutions.
Telecom Operators Seek Clear Rules for Loan Defaults
Meanwhile, telecom operators want a clear system for handling missed payments. Their proposal recommends a gradual recovery process. SIM blocking would only be considered in cases of persistent defaults, with customer consent and appropriate safeguards.
A final framework could introduce payment reminders, advance notices, and dispute resolution procedures. It could also include relief for customers facing genuine financial difficulties. Services should be restored promptly once outstanding payments are cleared.
Reducing smartphone prices could also make financing more accessible. Reviewing duties and taxes, especially on entry-level devices, could lower the amount consumers need to borrow.
Ultimately, high device prices, limited credit records, and unresolved financing rules continue to restrict smartphone ownership in Pakistan. Addressing these issues could help more people access mobile internet and digital services.
As education, employment, digital payments, and public services increasingly move online, affordable smartphones are becoming essential. A clear financing framework could help narrow Pakistan’s digital divide.
