Google has banned carrier-paid apps in Pakistan due to nonpayment of unpaid dues, despite repeated assurances from the Ministry of IT and Telecom.
According to our channel investigations, the download option for paid apps via mobile phone accounts has been suspended in the country. While this ban only applies to local transactions, it is worth noting that when installing a paid app, the Google Play Store still supports credit card payments.
This comes after the State Bank of Pakistan (SBP) halted payments of $34 million to international service providers last week. The blockade/confusion caused havoc in the local tech community, with people unable to download paid Google Play Store apps using their mobile balance as a payment method.
Harcheez.com heard at the time that the central bank had suspended the direct carrier billing (DCB) method, causing payments to overseas service providers such as Google, Amazon, and Meta to get stalled.
As a result, given the country’s recent economic challenges, the government agreed to open Google transactions for a month while simultaneously devising a framework for an effective payment process in order to limit any liquidity shortfalls. In lieu of the payment barrier, and with no policy or process in place, Google has banned carrier-paid apps in Pakistan as it awaits the government’s intervention to find a solution.
The Ministry of Finance has now consented to IT Minister Syed Amin Ul Haque’s request for developing an effective method and making payments against Google App services. At the time, the minister stated that SBP had been asked to postpone the implementation of the DCB mechanism policy for one month.
Amin Ul Haque stated that telecom providers had been granted one month to adopt payment procedures and that the Ministry of IT, Finance, and the State Bank will develop a plan of action in mutual consultation within a month. Amin stated that in response to the Telecom operators’ plea for assistance, a letter was submitted to Finance Minister Ishaq Dar requesting that the payments are made and a timetable be established.
Jazz CEO Aamir Ibrahim also thanked Finance Minister Ishaq Dar and IT Minister Amin Ul Haque for making a timely decision on the issue.
“Relieved to see the DCB issue progressing towards a resolution. Thank you Syed Amin Ul Haque, Ishaq Dar and SAPM Finance Tariq Bajwa for ensuring Google Play apps remain available to Pakistani users. A whole-of-government approach is needed to strengthen the digital ecosystem,” he tweeted on Thursday.
For those who are unfamiliar, DCB is an online mobile payment system that allows users to conduct transactions using their mobile phone carrier bills. Until recently, telecoms allowed users to purchase these products with airtime and subsequently transmit funds abroad, classifying such transactions as payments for IT-related services.