The Special Investment Facilitation Council (SIFC) has taken up the matter of smartphone financing, directing the Ministry of Information Technology and Telecommunication to conduct due diligence by the end of June 2024.
According to a news report, draft regulations for smartphone financing were presented at a recent SIFC meeting. During the discussions, the council emphasised the need for the IT ministry to consult with various stakeholders and experts to develop a viable solution for the smartphone financing issues.
Previously, the smartphone financing program draft was presented to the cabinet, but it faced opposition from two telecom operators.Â
The IT ministry suggested that the Pakistan Telecommunication Authority (PTA) could block SIMs of loan defaulters who received smartphone financing.Â
However, the telecom industry indicated that the current high-tax environment made the financing initiative unfeasible.
The federal government proposed a hike in taxes on smartphones in the 2024-25 budget, a move criticized by the telecom industry. Industry representatives argue that these high taxes will hinder the government’s initiative to provide smartphone financing.
In response, the IT ministry has been consulting with the PTA and the telecom industry. The draft regulations also propose remedial measures for handling payment defaults, with a clause for reviewing the directive after six months if necessary.
The ministry pointed out that Section 8(2A) of the Pakistan Telecommunication (Re-Organisation) Act 1996 allows the federal government to issue policy directives related to the telecommunication sector, provided they are consistent with the Act.
