Islamabad: It was learned that the State Bank of Pakistan canceled the payment of $34 million to foreign service providers, preventing mobile customers in Pakistan from downloading Google Play Store services as of December 1, 2022.Google Play Store services to be inaccessible in Pakistan
Payment of $34 million annually through mobile firms to international service providers, such as Google, Amazon, and Meta, became hung up when the SBP banned the Direct Carrier Billing (DCB) method. Customers from Pakistan will now be compelled to download Google and other foreign apps to make purchases using credit cards or debit cards exclusively. However, because the credit card option is only available to a certain number of consumers, most mobile users might need help downloading apps from the Google Play Store.
On Friday, the Pakistan Telecommunication Authority (PTA), the Ministry of Information Technology & Telecommunication, and four mobile cellular operators (CMOs) unanimously wrote a joint letter to the State Bank of Pakistan asking it to reconsider its decision to revoke the DCB mechanism for payment of the dollar fee in light of the country’s current liquidity crisis.The News received confirmation from top government sources that Google services like downloading apps won’t be available. They informed the appropriate authorities that a $34 million payment was past due and that their Google App Store downloads services would only be offered if they were paid.In a joint letter to the government, the four mobile operators said that in addition to other major contributions in the form of tax, tariffs, and other levies, the telecom sector is one of the largest donors to foreign direct investment.
It is necessary to recognize the telecom industry’s role in advancing Digital Pakistan’s goals. All stakeholders must be involved in and facilitate Pakistan’s digital transformation if it is to have a positive impact on all social and economic sectors.
The IT designation of telecom providers was withdrawn months ago by the State Bank of Pakistan (SBP). Furthermore, it was suggested that instances be sent to SBP individually for approval. As a result, the mobile operators complained that they were experiencing lengthy delays in obtaining approvals, disrupting essential services. These services include billing management, fraud management software, Office 365, robotics automation software, payments for software developers, and payments related to digital advertising on large IT platforms.
The hosting on cloud platforms, licensing needed for services/platforms, security measures, and in many cases, technical expertise to upskill the local workforce to reach international standards are all areas where Pakistan’s digital economy heavily depends on foreign service providers.
Because of the impact of non-payment, all of the main players, including Google, Amazon, and Meta, are likely to stop providing their services. Telecom and internet customers’ inability to access digital platforms like those used for digital banking, e-commerce, e-education, and e-health that rely on cloud infrastructure and require licensing for both applications and web-based platforms will be a direct result of this. Given the need for distribution support and interest from the industry players like Google, Amazon, and Apple representing Facebook, distribution and monetization of digital platforms will become very difficult. As a result, companies, services, and goods beyond the digital sphere will be impacted. Digital marketing is currently the most effective channel for all businesses, products, and services.
The letter added that “any potential disruption of such digital services owing to non-payments will create a lot of criticism about Pakistan in the globe in this age of social media and should be avoided at all costs.”
“It is pertinent to mention here that we all understand the current challenge of the worsening economic conditions of the country and are open to working in an amicable manner with the Regulator (SBP); as we are already working with them in case of the telecom sector imports related transactions to navigate through these trying times,” the letter’s conclusion read. Customers in Pakistan must now download Google and other foreign applications to make transactions that only accept credit cards or debit cards. However, most mobile users might not be able to download apps from the Google Play Store because the credit card option is only accessible to a restricted number of consumers. As a result of the nation’s ongoing liquidity crisis, the Pakistan Telecommunication Authority (PTA), the Ministry of Information Technology and Telecommunication, and four mobile cellular operators (CMOs) jointly wrote a letter to the SBP on Friday asking it to reconsider its decision to revoke the DCB mechanism for payment of the dollar fee.
Reputable government sources confirmed to The News that Google services like app downloads wouldn’t be accessible. They warned the appropriate authorities that they would only provide their services for Google App Store downloads if a $34 million payment were made.
In a joint letter to the government, the four mobile operators said that in addition to other major contributions in the form of tax, tariffs, and other levies, the telecom sector is one of the largest donors to foreign direct investment.
The State Bank of Pakistan abolished the IT category for telecom operators months ago. It was also proposed that each case be referred to SBP separately for approval. The mobile operators claimed that this was disrupting critical services since they were facing delays in getting approvals. Among these services are billing management, software for managing fraud, Office 365, robotics automation software, payments for software developers, and payments for digital advertising on significant IT platforms.
The areas where Pakistan’s digital economy heavily relies on foreign service providers include hosting on cloud platforms, licensing requirements for services/platforms, security measures, and frequent technical skills to upskill the domestic workforce to meet international standards.
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All the major players, including Google, Amazon, and Meta, are struggling due to non-payment and are most likely to discontinue offering their services altogether. As a result, consumers of telecom and internet services will only be able to meet their needs from digital platforms like digital banking, e-commerce, e-education, and e-health that rely on cloud infrastructure and demand licenses for both applications and web-based platforms.
It is necessary to recognize the telecom industry’s role in advancing Digital Pakistan’s goals. All stakeholders must be involved in and facilitate Pakistan’s digital transformation if it is to have a positive impact on all social and economic sectors. Selling digital platforms will become very challenging due to the absence of distribution assistance and interest from market leaders like Google, Amazon, and Apple, who represent Facebook. This will affect businesses, services, and products outside the digital space. The most effective avenue for all businesses, goods, and services right now is digital marketing.The letter added that “any potential disruption of such digital services owing to non-payments will create a lot of criticism about Pakistan in the globe in this age of social media and should be avoided at all costs.”“It is pertinent to mention here that we all understand the current challenge of the worsening economic conditions of the country and are open to working in an amicable manner with the Regulator (SBP); as we are already working with them in case of the telecom sector imports related transactions to navigate through these trying times,” the letter’s conclusion read.Online rumors asserting that Pakistani Android users won’t be able to access Google Play Store services are untrue and deceptive because they need to consider that users can still access and utilize free apps. Android users in Pakistan won’t be able to buy paid apps through mobile carrier billing since the State Bank of Pakistan (SBP) stopped disbursing $34 million to foreign tech firms to block currency outflow. There won’t be any more carrier payments, allowing mobile users to buy paid apps with transferable credits.Details indicate that the SBP has stopped paying international service providers a total of $34 million, which would prevent Pakistani mobile users from accessing paid services through the Google Play Store. Details show that Direct Carrier Billing was discontinued by the SBP (DCB). The payment to international service providers, such as Google, Amazon, and Meta, has been halted. It is significant to know that credit or debit cards are the only payment methods accepted by Pakistani users for apps or paid services.
After the central bank stopped utilizing the direct carrier billing (DCB) system, the $34 million payment per year made through mobile companies to foreign service providers like Google, Amazon, and Meta became delayed.
Customers in Pakistan must now download Google and other foreign applications only to use credit cards or debit cards when making transactions. However, most mobile users might not be able to download programs from the Google Play Store because the credit card option is only accessible to a specific number of customers.The Pakistan Telecommunication Authority (PTA), four mobile cellular providers, and the Ministry of Information Technology and Telecommunication asked the SBP to rethink its decision on Friday (CMOS).
Reputable government sources confirmed to The News that Google services like app downloads wouldn’t be accessible. They warned the appropriate authorities that they would only provide their services for Google App Store downloads if a $34 million payment were made. The four mobile carriers asserted in a joint letter to the government that, in addition to its other sizeable contributions in the form of taxes, tariffs, and other levies, the telecom industry is one of the major sources of foreign direct investment.
It is impossible to ignore the part the telecom sector has played in furthering Digital Pakistan’s objectives. If Pakistan’s digital transformation is to have a good effect on all social and economic sectors, all stakeholders must be involved and help to enable it.The State Bank of Pakistan stripped the IT designations from mobile service providers months ago. It was also proposed that each occurrence be sent to SBP separately for approval. Since the mobile operators assist the business in managing its IT and digital infrastructure to satisfy all operational needs internally and provide billing and fraud control services to its clients.All major players, including Google, Amazon, and Meta, are likely to discontinue offering their services due to the impact of non-payment. It will impact how effectively telecom and internet users can fulfill their needs from digital platforms like online banking, e-commerce, e-education, and e-health that use cloud infrastructure and demand licenses for applications and web-based platforms that suffer severely.