Hello and welcome to Apple Support Communities, farrooq!
We understand you're having trouble setting up eSIM on your iPhone. We'd be happy to provide information to help you out.
First thing to point out is that the alert says your iPhone can only use data plans from a different network provider.
You can also try the steps suggested here to help you out: If Dual SIM with eSIM isn't working on your iPhone
"If you can't set up your eSIM
Check with your carrier to see if your iPhone plan is eligible for Dual SIM service.
If you have an enterprise or corporate cellular service plan, check with your company or carrier to see if they support this feature.
Make sure that your carriers support coverage in your area and that there are no service outages.
Make sure that your cellular plans are set up, ready to use, and don’t have a billing-related blockage.
If you still can't set up your eSIM, contact your carriers for support."
Have a great day!