The suspension of DCB payments by the State Bank of Pakistan (SBP) has raised further concerns that users in Pakistan will be unable to purchase applications through Google Play, and that other tech giants such as Amazon and Meta may consider discontinuing their services altogether. The SBP’s decision has once again illustrated that it is out of touch and is unable to grasp how adverse the consequences will be for our struggling IT sector. Even if nothing of the sort materializes, the constant uncertainty and threat of services being disrupted does not present Pakistan as a favourable destination for companies to invest in.
According to reports, a letter had been sent to Finance Minister Ishaq Dar earlier during the week expressing reservations over the move. Federal Information Technology and Telecommunication Minister Aminul Haque has stated that all the industry stakeholders were consulted before this letter was sent, and that there is consensus over the fact that this development will make matters for the already struggling telecom sector.
The blocking of payments to international companies will dent the country’s reputation, and users who use paid applications will be facing immense difficulties. It is hard to understand why there was no prior notice before a decision of such magnitude was taken, and also the IT and telecom ministry members were not taken on board. While some have argued that the DCB system has its own flaws when it comes to security, it is important to understand that the DCB exists because of the lack of international digital payment methods to pay for various apps. A lot of people do not have access to debit and credit cards, so it is elitist to push for the elimination of such a mechanism unless we ensure better access and inclusion in terms of digital payments.
The SBP’s rebuttal saying that the reports are misleading and that they are requiring entities to go through a one-time regulatory approval process misses the point. The authority fails to see how it is creating unnecessary hurdles, and that too for one of the most promising sectors of the country. It is sad to see the direction in which we are headed. While India will soon be producing Apple phones, our consumers could be deprived of the most basic services offered by Google and other tech giants.