Amir Saeed

The decline in the number of mobile subscribers in Pakistan poses a critical challenge to the “Smartphone for All” initiative, threatening to widen the digital divide and hinder countrywide socio-economic progress.

Talking to WealthPK, Aatizaz Hussain, former Manager of the Implementation Financial Literacy at the National Institute of Banking and Finance (NIBAF), highlighted that the recent decline in mobile subscribers poses a significant setback to the country’s efforts to bridge the digital divide.

He said the Ministry of Information Technology and Telecommunication’s (MoIT) “Smartphone for All” initiative, which aims to enhance digital inclusion through accessible smartphone instalment plans, is now facing the challenge of a shrinking subscriber base.

He further highlighted that the implications of this decline are profound. While the initiative holds promise for fostering economic growth by increasing smartphone accessibility, the current trend undermines its potential benefits.

The number of cellular subscribers in Pakistan dropped from 193.309 million at the end of October 2024 to 193.238 million by the end of November. Similarly, 3G and 4G users decreased from 139.123 million to 139.037 million over the same period.

The Monthly Next Generation Mobile Service (NGMS) penetration rate fell from 57.02% in October 2024 to 56.9% in November. Additionally, the country's total teledensity, which represents the number of connections per hundred individuals, declined from 80.3% to 80.1% during the same timeframe.

“Widespread smartphone adoption is critical for stimulating economic activities such as e-commerce and digital banking, which are essential for contributing to the country’s GDP and expanding market participation. However, with fewer subscribers, the anticipated boost to the digital economy may not materialize as expected,’’ he said.

Moreover, he lamented that job creation and new business models that rely on increased smartphone usage are at risk. Fields such as app development and digital marketing thrive on a robust user base; thus, a decline in subscribers could stifle job opportunities and hinder the growth of tech-driven employment sectors.

Talking to WealthPK, Ahad Nazir, an Associate Research Fellow at the Sustainable Development Policy Institute (SDPI), emphasized that smartphones are crucial for enhancing financial inclusion, particularly for the unbanked communities. However, the decreasing number of mobile users poses a significant challenge, as it can limit access to essential financial services and hinder many households from achieving financial stability.

He added that the digital divide remains a pressing issue, particularly for marginalized communities. The decline in mobile subscriptions exacerbates the existing connectivity gaps in rural and underserved areas, which the “Smartphone for All” initiative aims to address.

He highlighted that by providing affordable smartphone options, this policy could effectively target these disparities; however, with the overall decline in subscribers, achieving a balanced digital landscape has become increasingly difficult.

“Furthermore, smartphones play a crucial role in education and workforce development by expanding access to the learning resources and facilitating remote education. The decline in mobile subscriptions could hinder progress in these areas by limiting access to online learning platforms and diminishing opportunities for skill development.”

Credit: INP-WealthPk