Navigating Mobile Phone Usage Challenges in Pakistan: Taxation, Luxury, and Crime

Pakistan is currently a developing country. As of Wednesday, February 7, 2024, the population stands at 243,318,381. Quantitatively, 45% of the population can be identified as belonging to the middle class, 51% are from the poor class, and the remaining 4% are classified as upper class.

In early 2023, a total of 191.8 million cellular mobile connections were active in Pakistan, equivalent to 80.5% of the total population. As of my last update, there were approximately 101 million smartphone users in Pakistan.

Due to continuous devaluation of the Pakistani currency, the prices of imported smartphones have increased to an extent that hardly anyone from the middle class can afford the latest smartphones. The average salary of the middle class in Pakistan ranges from PKR 30,000 to PKR 70,000 per month. The latest smartphone, such as the Apple iPhone 15 Pro Max with 1TB Storage, costs approximately PKR 700,000, which exceeds the annual salary of a middle-class individual.


A high-end smartphone is an unnecessary luxury for a middle-class individual. Luxury consumption has been on the rise in Pakistan, reflecting an increasing demand for high-end goods and services among certain segments of the population. This trend is influenced by factors such as rising disposable incomes, urbanization, and changing lifestyles. However, it's important to note that luxury consumption patterns can vary widely across different regions and socioeconomic groups within Pakistan.

The luxury lifestyle is influenced and promoted in public by television dramas and movies, which portray lavishness, rich lifestyles, and easy money ideas. This has also contributed to an increase in crime such as killings, snatching, robbing, and extortion. To meet the high demand for luxury smartphones, there are multiple illegal channels for importing smuggled mobile phones to sell at cheaper prices compared to the original and official prices.

The government has adopted several methods to stop the usage of smartphones imported through illegal channels. However, the policy announced for mobile phone sales has further increased inflation. The Pakistan Telecommunication Authority (PTA) has imposed heavy taxes on every imported phone, leading to an increase in official prices. Failure to pay the tax results in the phone being blocked by PTA for using Pakistani SIM Cards.

Approximately 20% of people agree to pay the PTA Tax on smuggled phones, while the remaining 80% are either unwilling or unable to afford the heavy tax. Consequently, technology geeks have explored two methods to avoid paying heavy taxes on smartphones.

Method 1 involves temporarily unlocking the phone to developer mode to decode and reprogram the phone, changing its actual IMEI number to a new one. However, this method compromises the phone's operating system security and renders some secure apps, like banking apps, unusable. This method is commonly referred to as 'rooting' or 'patching' the phone, and it decreases the phone's resale value as it cannot be updated to newer versions of Android.

Method 2 provides a permanent solution for using smuggled phones without paying the original tax amount. The Component/Part Identifier (CP ID) is a method in which the IMEI of the phone is hardcoded, mimicking the process done by the Original Equipment Manufacturer (OEM). After replacing/repairing the IMEI, the phone operates normally. This is a highly technical job, and technicians who perform this charge higher fees compared to Method 1.

It's crucial to note that both Method 1 and Method 2 are considered crimes. Changing the IMEI of a phone is a serious offense. Moreover, these methods also facilitate the reuse of stolen phones, contributing to the increasing rate of mobile phone snatching nationwide.

To address this issue, taxes on phones should be decreased to lower prices. Authorities should not compel people to resort to criminal methods to use their mobile phones. Collecting less tax is preferable to collecting no tax at all. Therefore, people should be allowed to pay their taxes easily instead of facing obstacles. The government has no mechanism to trace or stop IMEI changes because every smartphone owner can change the IMEI themselves using these methods. There should be installment options available for paying PTA Tax. Instead of focusing on ways to stop these IMEI-changing methods, the government should prioritize providing ease to people by reducing the actual tax and offering installment options for tax payment.

Currently, only Bank Alfalah and Bank Islami accept online payments for PTA tax. Every bank should facilitate online tax payments for their customers to ensure ease of tax payment. Installments based interest-free options should be introduced for making tax payments.


Author

Sajid M.Qureshi

Email: sajid.mq@outlook.com
Blogs: https://sajidmq.blogspot.com
Linkedin: https://linkedin.com/in/sajidmq

Comments

Post a Comment

Popular posts from this blog

Control vs Growth: Why Pakistan’s Digital Future Is Being Suffocated

Image
A quiet but widening gap is emerging between Pakistan’s younger generation and those who hold power. It is not merely generational; it is philosophical. On one side is a population that wants speed, access, opportunity, and global integration. On the other is a system increasingly focused on control, restriction, and short-term optics. The result is a growing disconnect that threatens Pakistan’s economic and digital future. Generation Z wants faster internet because their livelihoods depend on it. Freelancing, remote work, digital commerce, cloud services, and content creation are not luxuries—they are income streams. Yet policy decisions increasingly prioritize stronger firewalls, tighter controls, and heavier regulation under the banner of “security.” While cybersecurity is a legitimate concern, the purpose of firewalls was never mass surveillance, content policing, or political monitoring. Globally, firewalls exist to prevent cyberattacks, data breaches, and infrastructure compromis...
Read more

Mastering the First Few Seconds: A Practical Strategy to Defeat Temptation

In today’s digital world, distractions and temptations are everywhere. Whether it’s through social media, online content, or daily interactions, the human mind is constantly exposed to stimuli that can easily pull attention away from productivity, discipline, and personal growth. One of the most powerful of these impulses is lust —a natural human emotion that, if not managed properly, can negatively affect focus, decision-making, and personal values. However, overcoming such impulses is not about suppressing human nature or trying to eliminate thoughts entirely. The real challenge—and the real opportunity—lies in how we respond in the first few seconds when temptation appears . The Real Battle Happens in the First Few Seconds Temptation rarely starts as a strong force. It usually begins with a simple trigger—a visual cue, a thought, or a memory. At that moment, the brain begins processing the stimulus and gradually builds anticipation. The crucial point is this: The strength of temptat...
Read more

Pakistan's Cost of Living vs Income Reality

Image
The biggest challenge in Pakistan today is not just unemployment. It is the widening gap between income and survival. Over the last decade, salaries have increased on paper. But the cost of living has increased much faster. From rent and fuel to groceries, healthcare, utilities, and children's education, the average household is under constant financial pressure. A salary that once supported a decent middle-class lifestyle is now barely enough to cover monthly essentials. 2016 vs 2026: A Reality Check Ten years ago, many middle-class families could manage household expenses, educate their children, save a portion of their income, and even dream of owning a home. Today, despite earning significantly more, many families find themselves under greater financial stress. The alarming reality is that while incomes increased by roughly 2 to 3 times, many essential expenses increased by 4 to 6 times. In simple terms, people are earning more money but purchasing less with it. The Real Cost o...
Read more