Smartphone Financing Gap Leaves Millions in Pakistan Offline Despite 81% Broadband Coverage

Pakistan has made major strides in extending mobile broadband coverage, yet a wide gap remains between network reach and actual internet use, with the affordability of smartphones and the difficulty of obtaining installment financing keeping millions offline. According to a GSMA report published in August 2025, mobile broadband covered 81 percent of the country's population, while only 29 percent used mobile internet in 2024, with affordability, digital literacy and trust cited among the main barriers.

Device ownership data underscores the scale of the challenge. The Pakistan Bureau of Statistics' Household Integrated Economic Survey 2024-25 found that 50 percent of people aged 10 and above owned a mobile phone, including smartphones. Ownership stood at 69 percent among males but just 31 percent among females, highlighting significant disparities in access to personal devices.

For families on tight budgets, the upfront cost of a smartphone, shaped by import dependence, duties and taxes, must compete with essentials such as food, rent and education. Installment plans offer a practical route to ownership by spreading the cost over time, and providers such as Kistpay already offer smartphones on installments, including through partnerships with telecom operators. However, the consumers who most need this option often lack the documented income and borrowing history required to qualify.

Daily-wage earners and informal traders may be able to set aside money for regular payments without having formal evidence of that ability, creating a challenge for financiers assessing repayment capacity. Limited credit histories, undocumented incomes, financing costs and repayment-risk concerns can restrict access for those outside conventional banking and credit systems.

Several policy developments could help close the gap. The State Bank of Pakistan released draft Open Banking Regulations for public consultation on October 30, 2026, which could enable alternative credit assessment through secure data sharing with customers' consent, helping lenders evaluate applicants who have transaction records but little borrowing history. Separately, in a joint letter to the Pakistan Telecommunication Authority dated May 7, 2026, Jazz, PTCL/Ufone, Telenor and Zong called for regulatory support for wider device financing, including SIM blocking as an ultimate measure subject to customer consent and consumer-protection safeguards.

Finalizing the proposed smartphone financing framework could give providers greater certainty around repayment and persistent defaults, encouraging them to extend installment plans to more consumers. Any implementation would likely follow a graduated process, starting 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.