A significant portion of Pakistan's population remains unable to acquire smartphones due to high upfront costs and a lack of access to installment financing. While paying in installments could help people get online, those who need the devices most often lack the documented income and borrowing history required by lenders. This creates a barrier for daily wage earners and informal traders who may have the ability to make regular payments but lack formal evidence of their earnings.
The Pakistan Bureau of Statistics’ Household Integrated Economic Survey 2024-25 revealed that 50 percent of people aged 10 and above owned a mobile phone, including smartphones. The data showed a gender gap in ownership, with 69 percent of males owning devices compared to 31 percent of females. While a GSMA report from August 2025 estimated that mobile broadband covers 81 percent of the population, only 29 percent used mobile internet in 2024. The report identified affordability, digital literacy, and trust as key barriers.
For many households, the high price of smartphones—driven by import dependence, duties, and taxes—competes with basic needs like food, rent, and education. While providers like Kistpay already offer installment plans, expanding these to underserved consumers is difficult because of limited credit histories and risks regarding repayment.
To address these issues, the State Bank of Pakistan’s draft Open Banking Regulations, released for public consultation on October 30, 2026, could offer another avenue for alternative credit assessment through secure sharing of financial data with customers’ consent. If implemented, this could help lenders assess applicants who have financial transaction records but limited borrowing histories. Finalizing the proposed smartphone financing framework could also give providers greater certainty around repayment and the handling of persistent defaults, helping them extend installment plans to more consumers currently excluded from credit.
On May 7, 2026, telecom operators Jazz, PTCL/Ufone, Telenor, and Zong sent a joint letter to the Pakistan Telecommunication Authority seeking regulatory intervention to support wider device financing, including SIM blocking as an ultimate measure, based on customer consent and consumer protection safeguards. The submission reflects a shared position among the four operators on the need for credible measures to manage persistent defaults. Implementation could follow a graduated process, beginning with payment reminders, advance notice and opportunities to settle overdue amounts, followed by restrictions on the financed handset, with SIM blocking considered only as a last resort.
Alongside financing reforms, reducing the upfront cost of smartphones remains important. Measures to make basic smartphones more affordable, including a review of applicable duties and taxes, could help bring ownership within reach of more households on lower incomes. With smartphones increasingly serving as gateways to education, employment, digital payments and essential services, limited device ownership risks widening the divide between those who can participate in the digital economy and those who cannot.
