RECENTLY, while dining with my colleagues at a cafe in F-6 in Islamabad, I encountered a common yet frustrating issue; our attempts to pay using credit cards failed repeatedly. Although the server mentioned that it might be a network glitch, we could not help but wonder if this was an intentional attempt by the outlet to force cash payments. How come three different banks will have their servers down simultaneously? Eventually, we had no choice but to pay in cash, incurring the full general sales tax (GST) amount, which is otherwise five per cent when paying through the bank.

Later, I was astounded to receive debit notifications from all the three banks whose credit cards I had tried using at the said outlet. 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 seven working days. This experience compelled me to think why it is the customers every time who bear the brunt, while businesses and banks often, if not always, get away with everything.

This incident is not the first occurrence. Every day, hundreds of consumers go through similar or worse situations that raise significant concerns about the consumer protection framework in Pakistan and the need to raise voice to uphold consumer rights. In an era where digital transactions are becoming increasingly common, consumers should not be penalised for their preferred payment methods.

Regulations must be strengthened to ensure that businesses uphold fair practices, treat customers ethically, and provide transparent, convenient and secure payment options.

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 prefer 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 the national economy and increasing tax revenues without burdening the salaried class.

Regulators may also revisit the implementation strategy that responds to following very basic questions: why is it consistently that businesses seem to evade responsibility, while customers face inconvenience and bear the burden? What purpose do facilities and regulations serve if there is no effective checks and balances on the implementation of laws? 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?

If the objective of regulators is to genuinely document the economy, expand tax revenues, and provide convenience to the citizens, it is imperative that they focus on the implementation of regulations and laws, particularly those related to consumer protection and rights.

By ensuring that regulations are effectively enforced, businesses will be incentivised to comply, citizens will be spared unnecessary burden, and the broader goals of a transparent and thriving economy can be achieved.

Empowering consumers with clear rights, and holding businesses accountable for their actions will foster a more equitable and consumer-friendly marketplace for all.

This, in turn, will esult in increased trust of the citizens in state institutions, streng- thened citizens’ feedback mechanisms,and improved overall governance.

Asif Farooqui
Islamabad

Published in Dawn, September 15th, 2023