Editorial: It has been almost six years since the much-touted device identification, registration and blocking system was introduced by the Pakistan Telecommunication Authority (PTA). The system was aimed at improving the communications sector by preventing the use of smuggled and stolen smartphones, thereby promoting the development of the communications industry. Despite collecting taxes on these devices, the country's treasury still faces large losses due to widespread smuggling of these products.
Disturbingly, the burgeoning e-commerce industry appears to be emerging as a major driver of illegal smartphone trade.
As highlighted in this newspaper's report, some of the country's major e-commerce platforms are facilitating the trade of smuggled high-value smartphones that are not approved by the PTA, with consumers paying the tax. The company is reportedly making these devices available for purchase from online sellers. It comes with a six-month guarantee for him and could cost the government hundreds of millions of dollars in lost revenue. Quite shockingly, even authorized stores of prominent companies such as Samsung and Apple are said to be selling devices that are not approved by the PTA, and these trading activities are largely unchecked by the relevant authorities. There is no check.
The leading e-commerce platform claims to have “strict policy guidelines in place for sellers” and requires sellers to sell products only after properly verifying business details to ensure authenticity. It is said to be allowed, but clearly when it comes to selling expensive smartphones. , considerations of making money take precedence over the laws of the land.
Here, the FBR deserves much of the blame for making this situation even worse. The company's failure, either through incompetence or complicity, or both, to prevent such illegal transactions has allowed e-commerce websites and smartphone retailers to continue such activities without fear of litigation.
It may be noted that departments within the FBR, including the Inland Revenue Department and Customs, have established anti-smuggling units. What is the point of spending precious financial resources staffing these organizations if smuggled smartphones are openly traded online? If it's being traded, one might wonder what the personnel stationed there are busy doing. There are legitimate questions about whether the FBR and its various arsenals can meet the challenges posed by the digital age, highlighting the need for comprehensive reform and adaptation to modern technological advances.
Recall also that this newspaper reported in December 2023 that the federal government had uncovered a nationwide network of cell phone smugglers and sellers. These traders were allegedly supported by officials of various departments including FBR, FIA, Police, FC, and Police. PIA, for its heinous act. Since then, it is clear that little substantive steps have been taken to remove corrupt elements from these sectors, and smartphone smuggling continues. If there was ever any doubt that corruption within the government sector is having a negative impact on various aspects of people's lives, including the economy, headlines like this are enough to dispel any doubts.
An immediate need is for policies to crack down on the sale of smuggled smartphones on e-commerce platforms through increased oversight by regulatory and law enforcement agencies, and to ban online sales of devices that have a clear impact on violators, including e-commerce. This is a reinforcement of Ensure transaction transparency by providing a mechanism to report suspicious listings and sellers. Most importantly, it is clear that government departments, including the FBR, need to improve their ability to deal with crimes of a digital nature, and a wide range of measures aimed at eradicating corruption from these institutions are needed. Reform is also necessary.
Our economic situation does not allow authorities to tolerate unrestricted trade in smuggled smartphones. It is imperative that governments take decisive action to combat this illegal activity and protect the health of online market spaces and government revenues.
Copyright Business Recorder, 2024
