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The Senate Standing Committee on IT and Telecom, chaired by Senator Palwasha Khan, erupted in criticism over Jazz’s alleged overcharging of consumers by more than Rs 6.58 billion, sparking a heated exchange with the Pakistan Telecommunication Authority (PTA).
The issue, first flagged by the Auditor General of Pakistan (AGP), highlighted that Jazz raised tariffs during FY 2023–24 beyond approved limits. Consumers were billed at rates higher than those authorized by PTA, drawing the attention of both lawmakers and regulators.
Senators Question Jazz’s Service Quality
Senator Palwasha Khan grilled both PTA officials and Jazz’s performance:
“Tariffs are increased, but does Jazz also provide quality service in return?”
Senator Nadeem Bhutto voiced his frustration with Jazz’s poor connectivity:
- “I have been using Jazz since 2010, and my father often scolds me because calls don’t even connect.”
- “Jazz service does not work at all on highways.”
- “On highways, Jazz only provides 2G service.”
These remarks underscored lawmakers’ dissatisfaction with Jazz’s deteriorating service despite consistently rising tariffs.
PTA Chairman: “I Will Not Defend Jazz”
The PTA chairman admitted shortcomings in Jazz’s service delivery.
- “I agree with the senators; Jazz’s quality remains an issue.”
- “I will not defend Jazz under any circumstances.”
He clarified that PTA regulates both tariffs and consumer protection:
- “Whenever Jazz increases tariffs, it will first seek PTA’s approval.”
- “If any consumer is overcharged, we ensure refunds.”
However, the AGP objected to PTA’s practice of issuing blanket approvals for quarterly tariff increases, calling it a loophole that let Jazz unfairly burden consumers.
PTA officials stressed that while cartelization has plagued nearly every sector in Pakistan, the telecom industry has been kept free from such practices under their strict watch.
Regulatory Concerns Over Tariff Hikes
The Chairman further revealed:
- “In 2024, Jazz increased tariffs by 19%.”
- “We regulate Jazz to maintain balance in the market.”
Jazz clarified that no overcharging was done. The tariff increase highlighted by the audit was duly approved by the PTA. PTA confirmed sharing detailed responses and supporting approvals with audit authorities. The issue was discussed in the DAC meeting. PTA reiterated tariff increases followed PTA approvals. DAC instructed verification of the submitted documents with the audit, which is still in process.
Jazz, Pakistan’s largest telecom operator with over 70 million subscribers, has faced mounting criticism over both pricing and service quality. Reports suggest that Jazz has been trying to offset rising operational costs, taxes, and foreign exchange fluctuations, but Senators argued that these burdens should not fall on consumers without corresponding improvements in service quality.
With growing scrutiny from both Parliament and regulators, Jazz finds itself cornered. The PTA chairman’s refusal to defend the company marks a rare public rebuke, signaling that lawmakers may push for tighter controls on telecom operators in the coming months.
