The income of Pakistani app developers could take a hit
The biggest "news" in the tech world last week was that Google's Play Store will be closed in Pakistan as the State Bank of Pakistan has imposed some restrictions. However, today's news investigation reveals that neither Google's Play Store nor Apple's Apple Store is closing in Pakistan, but the actual dispute is something else.
The ban imposed by the State Bank of Pakistan is on the "Direct Carrier Billing" facility provided by mobile companies to their customers.
Some wireless carriers have deals with Google and Apple to facilitate direct wireless carrier billing. This has the advantage that if you want to install a non-free but paid app from the Play Store or Apple Store, you can do so without using a credit or debit card. All you have to do is load the value of the application.
When you purchase the app, this amount will be deducted from your credit and transferred to the app creator.
When money is withdrawn from your account in rupees, the cell phone company pays the equivalent amount in dollars to Google. Google pays the app developer.
Now, while the mobile phone companies are paying Google in dollars, the dollars are being withdrawn from Pakistan. To prevent this withdrawal, the State Bank of Pakistan imposed a moratorium.
Will Play Store still work?
In simple words, the only change brought about by the ban imposed by the state-owned bank is that users lost the opportunity to purchase the app by depositing funds on the mobile. This has nothing to do with the game of goal or the operation of the Apple Store.
In a press statement issued on Saturday, the State Bank of Pakistan clarified this, calling many of the claims "baseless".
When Business Record contacted Parvez Iftikhar, an international consultant in the telecom sector, he said users can buy apps through credit and debit cards, while Google services will also be available in Pakistan. It cannot be eliminated.
However, Pervaiz Iftikhar said that Google Play Store is the biggest online store for buying apps in Pakistan and the ban by the state bank will definitely take a financial hit. People in Pakistan do not like to use credit cards and debit card payments seem to be quite difficult.
According to Pervaiz Iftikhar, the loss for telecom companies is that people are unable to use applications that they have to pay for monthly or annually, reducing data usage and hurting mobile company revenue.
“Also, the shutdown of the [payment] service could affect the income of Pakistani app developers. This would have far-reaching consequences.”
What is the solution to the problem?
The State Bank of Pakistan has stopped telecom companies from paying Google just $34 million. This is not a large amount in the context of international trade.
Parvaiz Iftikhar expressed the hope that the matter will be resolved soon as the amount is not large. "It seems to be a temporary situation," he says.
It should be noted that the IT Ministry and four mobile phone companies have written to the State Bank of Pakistan to lift the ban.
0 Comments