Millions of Pakistanis Still Can’t Afford a Smartphone or the Loan to Buy One

Millions of Pakistanis still struggle to afford smartphones, despite mobile network coverage reaching 81 percent of the population. The high cost of smartphones, compounded by taxes and duties, makes it difficult for those with limited incomes to purchase one outright. Installment financing offers a potential solution, but obtaining credit remains challenging for many.

Lenders typically require documented income and borrowing history, which daily wage earners and informal traders often lack. This creates a digital access gap, with only 31 percent of females owning a mobile phone compared to 69 percent of males. Pakistan's Digital Access Gap: 50 percent of people aged 10 and above own a mobile phone, but disparities exist between genders and informal workers.

Without reliable income records, financing providers find it hard to assess repayment capacity. The GSMA report highlights affordability, digital literacy, and trust as barriers. Pakistan has initiatives like Kistpay offering smartphones on installments, but expanding these services to underserved consumers remains difficult due to credit issues.

Proposed Open Banking Regulations could help by allowing lenders to assess applicants based on verified financial transactions. Telecom operators have called for regulatory support, including SIM blocking as a last resort, to manage persistent defaults. Lowering smartphone prices through tax and duty reductions could also make them more accessible to lower-income households.

Addressing these financing and affordability challenges is crucial to bridging the digital divide and ensuring that more Pakistanis can benefit from the opportunities presented by smartphones.