ISLAMABAD: Consumers in Pakistan will be able to make Play Store purchases through credit or debit cards from December 1 due to local requirements, global tech company JEE News reported on Tuesday.
Google Play is and will remain available to all users in Pakistan. However, the availability of payment options may change over time. A Google spokesperson said that from December 1, 2022, users in Pakistan will only be able to make Play Store purchases through credit or debit cards, subject to local requirements, until other payment methods become available.
The State Bank of Pakistan has canceled Direct Carrier Billing (DCB) for cellular mobile operators, raising the stranded balance to $34 million. Subsequently, the Ministry of Information Technology and Telecom, Pakistan Telecommunication Authority (PTA) and four mobile operators wrote to the central bank.
In his letter to Finance Minister Ishaq Dar, Information Technology and Telecom Minister Aminul Haq said that IT-related payments, including purchases of mobile apps and subscription services, below $100,000, should be made by State Bank to designated commercial banks. was adopted by
However, in September 2022, the SBP revoked the mandate of banks to make IT-related payments on behalf of telecom operators/cellular mobile operators.
“This repeal has prohibited telecom operators from paying global IT platforms such as Google, YouTube, Meta and Spotify etc. for operator-facilitated digital services and related customer payment processes known as direct carrier billing. is a standard procedure offered by cellular mobile operators (CMOs) globally with a significant tax value.
The minister added that last year, mobile operators in Pakistan contributed around Rs 5.3 billion to the national exchequer by offering these services. It warned that “all major players like Google, Amazon, Meta, are suffering due to non-payment and are more likely to stop their services in Pakistan”.
“Recently, Google has issued notices to suspend DCB services of mobile operators until all outstanding payments are cleared. Notices were issued to Jazz and Ufone (which are affiliated),” he said, adding that The suspension of the could result in serious political chaos and adversely affect the country’s reputation for investment with negative consequences on digital business, IT exports and e-learning. A heavy loss to the national exchequer.
He asked the Finance Minister to withdraw DCB’s cancellation of IT designation of respective banks authorized for IT-related remittances from telecom operators and to ensure timely payment of pending payments on global digital platforms. Attention and cooperation requested.
Meanwhile, State Bank in its statement said that during the recent off-site audits, it was observed that apart from using the mechanism of remittance of funds for IT-related services for their own use, telcos were diverting funds for video gaming. were sending a large part of , entertainment content purchased by its subscribers using airtime under DCB.
DCB is generally an online mobile payment method, which allows customers to make purchases by paying their mobile phone carrier bill. Telcos were allowing their customers to buy these products through airtime and then send funds abroad that reflected transactions such as payments for IT-related services. Thus, in effect, Telcos acted as intermediaries/payment collectors, facilitating access to services by their subscribers.
Therefore, in view of the violation of foreign exchange regulations, the central bank canceled the mandate of the telcos’ banks for such payments. However, to facilitate their legitimate IT payments, Telcos are advised to resubmit their applications through their banks. If any entity, including a telco, intends to act as an intermediary/collector and such arrangement involves the remittance of foreign exchange, it shall be specially authorized to provide such services under foreign exchange. To get permission, one has to approach State Bank separately through your bank. Regulation Act, 1947.
