Telcos Seek Review of SIM Blocking Policy

In early 2024, the Federal Board of Revenue (FBR) of Pakistan announced plans to block the mobile phone SIM cards of approximately 506,671 individuals who failed to file their income tax returns for 2023. This initiative aimed to enforce tax compliance by targeting non-filers.

Two of Pakistan’s four mobile operators oppose a policy mandating SIM blocking for defaulters, citing risks to digital inclusion and financial burden. They argue that, unlike in other countries, telecom companies lack safeguards against such losses.

The Ministry of IT and Telecom Pakistan has finalized the policy but awaits operator consensus due to disagreements over enforcement and financial responsibility. Originally drafted in November 2023, the policy remains stalled as operators fail to reach an agreement, delaying cabinet approval.

The key issue is enforcing penalties on defaulters, not the installment-based smartphone plan itself. While operators propose alternatives like higher interest rates or upfront payments, the government remains unconvinced, emphasizing existing high-interest installment options.