Pakistan’s long-delayed smartphone installment plan — the “Smartphone for All” initiative meant to put a phone in the hands of millions who cannot pay the full price upfront — has hit another wall. Months after the country’s four big telecom operators jointly asked the regulator for a clear framework, the rules are still not final, and industry insiders say financing companies remain stuck on two basic problems: who carries the risk when a buyer stops paying, and how to judge whether an informal worker can afford the installments at all.
The delay matters because the numbers are stark. Only half of Pakistanis aged ten and above own a mobile phone, and just three in ten actually use mobile internet despite mobile broadband networks reaching about 80% of the population. For a country that is steadily moving its classrooms, jobs, payments and government services online, the financing gap is quietly becoming a digital-access gap.
Four operators, one letter, no final rules
Jazz, PTCL/Ufone, Telenor and Zong — Pakistan’s four major telecom operators — submitted a joint letter to the Pakistan Telecommunication Authority (PTA) on May 7, 2026. They called for clear rules to support smartphone financing and to address repayment defaults. Their 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. That leaves questions about repayment recovery and customer protections unresolved, months after the joint proposal landed at the regulator.
Half the country owns a phone — and most don’t use mobile internet
According to the Pakistan Bureau of Statistics’ Household Integrated Economic Survey 2024–25, only 50% of people aged ten and above owned a mobile phone. Ownership reached around 70% among males but stood at just 30% among females. A GSMA report published in August 2025 highlighted the same mobile internet usage gap: mobile broadband networks covered around 80% of the population, yet 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 push up device costs. Although installment plans can make purchases easier, many buyers lack formal income records or credit histories — the very paperwork financing companies normally rely on.
The credit problem: judging borrowers with no paperwork
Companies such as Kistpay already offer smartphones through installment plans, including partnerships with telecom operators. But expanding these services to informal workers remains difficult: financing providers often struggle to assess repayment capacity and manage defaults.
One 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 — reducing their reliance on traditional credit histories and documented salaries. That approach may benefit people who regularly use digital payments but lack formal borrowing records, though its impact will depend on the final regulations and participation from authorized financial institutions.
What operators want in the final framework
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, with services restored promptly once outstanding payments are cleared. Reducing duties and taxes — especially on entry-level devices — could also make financing more accessible by lowering the amount consumers need to borrow.
Ultimately, high device prices, limited credit records and unresolved financing rules continue to restrict smartphone ownership in Pakistan. As education, employment, digital payments and public services increasingly move online, a clear financing framework could help narrow the country’s digital divide.
Also read: regulatory and credit assessment challenges
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