Last night, while dining with my colleagues at a café in F-6, I encountered a common yet frustrating issue – our attempts to pay using bank cards were failed repeatedly. Although the server mentioned it might be a network glitch, we couldn’t help but wonder if this was an intentional push for cash payments. Eventually, we had no choice but to pay in cash, incurring the 15% tax, which is otherwise 5% when paying through bank.

Later, I was astounded to receive debit notifications from all three banks. The ordeal had just begun, engaging me in a lengthy process of contacting the banks. Each one suggested waiting for 48 hours for the reversal, with the alternative being to lodge a complaint and wait for a response within 7 working days. One of the banks also told that the complaints related to POS can take up to 45 days. This experience compelled me to think why it’s the customers every time who bear the brunt, while businesses often seem to get away. Such a cumbersome and exhausting banking policies and procedures can only discourage a person not to use the banking channels ever to avoid such mess again.

This incident is not the first occurrence. Daily, hundreds of consumers go through the similar or worse situations that raise significant concerns about consumer protection framework in Pakistan and the need to raise voice to uphold the consumer rights. In an era where digital transactions are becoming increasingly common, consumers should not be penalized for using banking channels or digital payment methods. Regulations must be strengthened to ensure that businesses uphold fair practices, treat consumers ethically, and provide transparent, convenient, and secure payment options. And the regulators whether its state bank, PTA, FBR, district administrations or any other department, they must actively monitor the businesses and instances where consumer fell prey to the complex systemic glitches and complexities which apparently seem to protect the businesses and do not facilitate the consumers at all.

Regrettably, the issue is not unique to one business. In Islamabad, numerous retailers avoid bank transactions and solely accept cash. I faced a similar predicament at a well-known book and uniform store in G-11, and also at a clothing outlet in G-9. Many businesses resort to cash transactions, potentially to avoid documenting their sales and evading taxes. This situation raises concerns about the seriousness of the state and the regulators in documenting our economy and increase tax revenue without keep burdening the salaried class.

Regulators may also revisit the implementation strategy that responds to following very basic questions:

• Why is it consistently the businesses that seem to evade responsibility, while customers face inconvenience and bear the burden?
• What purpose do facilities and regulations serve if there is no effective check and balance on the implementation front?
• What measures are in place to ensure that tax laws are not violated, and citizens truly benefit from the offered facility, such as payments through banks, in this case?
• Does a mechanism even exist on part of FBR, State Bank or District Administrations to regularly monitor the businesses and actively responding to the consumers’ grievances?

Purpose of writing today is to bring the attention of the regulators on this end. If their objective is to genuinely document the economy, expand tax revenue, and provide convenience to citizens, it is imperative that they focus more intently on the implementation of regulations and laws, particularly those related to consumer protection and rights.

Ensuring that the regulations are effectively enforced, consumers are empowered with clear rights, and holding businesses accountable for their actions, will foster a more equitable and consumer-friendly environment; will result in increased trust of citizen in state institutions; and strengthen the social contract between the state and citizenry. This little effort will also enable an environment where citizen would see their taxes in action and state as a go to institution for redressal of their issues.

Below are a few small steps that can not only address the aforementioned issue but also empower citizens and strengthen their social contract with the state:

• State should take a lead in raising awareness about consumer protection laws and the mechanisms in place for their effective implementation. It is crucial that citizens are well-informed about their rights as consumers and know how to seek help in case of a complaint or dispute.
• Civil society can actively participate in educating the citizens about their rights and the procedures for resolving grievances and complaints.
• Business associations and chambers should be engaged to organize awareness campaigns that will also help them build the consumers trust and lead to healthy market place environment.
• Furthermore, integrating consumer protection education into school curriculums can cultivate a culture of consumer awareness and empowerment from an early age. Teaching young individuals about their rights and responsibilities as consumers will create a generation of informed citizenry who can contribute to a more sustainable and equitable society.

By promoting awareness about consumer protection laws and the channels for redressal, will empower citizens to make informed choices, assert their rights, and hold businesses accountable for any violations. This will not only benefit individual consumers but also contribute to a fair and transparent marketplace, promoting healthy competition and ultimately driving businesses to prioritize quality and consumer satisfaction.

A well-informed and empowered consumer base is essential for fostering a thriving economy built on trust, accountability, and mutual respect between consumers, business and the state.

*This Blog post is written by Asif Farooqui. He is the Deputy Director of Programs at Accountability Lab Pakistan. He is an accountability and governance practitioner, and frequently writes on issues related to governance, citizens’ rights, and public service delivery.