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Pakistan’s telecom companies want clearer smartphone financing regulations, while proposed banking reforms could open new opportunities for underserved buyers.
Pakistan’s leading telecom operators are asking regulators to help resolve the monetary and operational difficulties linked to offering smartphones on installment plans. Jazz, PTCL/Ufone, Telenor, and Zong have jointly requested that the Pakistan Telecommunication Authority (PTA) create rules for handling repayments and expanding access to device financing.
In a combined letter submitted on May 7, 2026, the companies stressed the importance of an official system that shields businesses from ongoing payment defaults. One proposed measure is limiting SIM services for users who repeatedly miss installment payments, though this would be considered only after other recovery methods and with the customer’s agreement.
Without an approved regulatory structure, financing companies reportedly struggle to apply consistent recovery practices. This uncertainty may also prevent firms from offering installment plans to a broader group of customers.
Cost remains a major barrier to smartphone ownership in Pakistan. Data from the Pakistan Bureau of Statistics’ Household Integrated Economic Survey 2024–25 indicate that around 50% of people aged 10 or older own a mobile phone, with ownership at 70% among men but only 30% among women.
A comparable divide appears between network availability and actual use. A GSMA report released in August 2025 said that mobile broadband networks reached 80% of Pakistan’s population in 2024, yet only 30% used mobile internet services.
Lenders also face obstacles when assessing applicants who lack standard employment documentation or formal credit records. Freelancers, small-business owners, and workers in the informal sector may have income that is hard to confirm through conventional lending criteria.
Installment programs provided by firms such as Kistpay have offered another way for people to obtain smartphones, often through partnerships with telecom companies. Still, fears over unpaid installments continue to limit the expansion of such services among underserved communities.
A potential solution appeared when the State Bank of Pakistan published draft Open Banking Regulations for public feedback on October 30, 2026. Once enforced, these proposals could enable lenders to assess applicants through verified transaction data, with customers’ consent.
Such financial information could allow lenders to evaluate people whose income appears in transaction histories, but who do not possess traditional credit documents. Alongside adaptable financing options and reduced taxes on basic smartphones, these steps could increase device ownership and connect more Pakistanis to the digital economy.
