Internet is no longer a luxury rather it has become a kind of basic commodity since connectivity deprivation could restrain your access to virtually everything right from availing services for daily errands to obtaining education, health and a host of other services.
There is no denying the fact that lack of good mobile phone sets is one of the key barriers to the growth of internet.
The dream of Digital Pakistan in essence is viable with the use of technology. It is a fact that connectivity is the basic tool of lifestyle. The use of 5G in Pakistan is likely in the not-too-distant future in case we adapt to the new normal prevailing all over the world.
Pakistan with merely 51% penetration still lags behind multifarious countries in the entire world when it comes to mobile broadband penetration. In Pakistan, 97% of broadband users access the service through their mobile phones which makes every user discard mobile sets with obsolete technology and opt for the ones which may be handy in terms of using the services. This compels everyone to go for a better and state-of-the-art handset.
How could an individual with modest income afford a handset costing Rs. 25000/- or above? This conundrum has been addressed in Karachi and other large cities of Pakistan, to be precise. There are several outlets/companies which offer handsets on Easy Monthly Installments (EMI), let alone banks. This has made it convenient for those with even meager income to avail expensive cell phones.
Buy Now & Pay Later concept has gained traction in middle, lower middle and even in the slums of Karachi. One could avail Xiaomi Redmi 10c 4GB/128GB by paying Rs. 4900/- as advance payment with monthly installment of i.e. Rs. 3425 x 12. In order to obtain Oppo A16s 4gb/64gb, pay advance payment of Rs. 5330/- with Rs. 3220 x 12.
In case you look forward to having Realme C25s 4GB/128GB, just bring Rs. 5900/- and then pay twelve monthly installments of Rs. 3155/- each. Those looking for Tecno Camon 19 Neo 6GB/128GB need to pay twelve installments of Rs.3,640/- each with advance payment of Rs.5,900/-.
Moreover VIVO Y15C 4GB / 64GB could be attained with an advance payment of Rs.5,900/- with twelve monthly installments of Rs.3,155/- every month. Furthermore, get Samsung A13 4gb/64gb with mere Rs. 6500/- as advance payment and pay Rs. 4265/- for the next months. This has made it likely for even pushcart vendors to have state-of-the art cell phone and relish the services which otherwise are confined to only the privileged.
Consumer financing is ubiquitous in almost every developing country let alone the developed where citizens have robust purchasing power. Consumer financing could help in financial inclusion and business growth. Pakistan is a country where branchless banking accounts reached 85 million by March 2022 and growing at a rate of approximately 22% year on year.
An individual from a startup divulged recently that his company offers consumer products including cell phones on easy installments. The customers with no documented proof of income could avail the products of their choice within two days on easy monthly installments. The requirement of bank statement etc. is something which might shy away a multitude of potential customers.
There are lots of people living in suburbs and lower middle class vicinities who do not possess any bank account. This is the segment which needs to be catered to.
Consumer credit in South Korea is 581733.8 billion currency units. It is 759.24 billion currency units in Pakistan. It is 15729 billion currency units in Japan. It is 1813970.74 billion currency units in Indonesia. It is 874.08 billion currency units in Norway. It is 14427.28 billion currency units in Russia. It is 1755.52 billion currency units in USA and 144.96 billion currency units in the United Kingdom.
Consumer credit could help the industry grow in Pakistan and this would eventually be instrumental in economic growth of the country in the long run creating employment opportunities for the skilled, unskilled and semi-skilled youth.