The Pakistan Telecommunication Authority (PTA) has imposed a massive penalty of PKR 116.7 million on China Mobile Pakistan (Zong). The regulator found serious regulatory violations regarding the issuance and activation of SIM cards.
According to a 16-page enforcement order, Zong failed to verify the physical presence of subscribers during SIM issuance. Furthermore, the operator did not enforce Live Finger Detection (LFD) features on its biometric verification devices. It also maintained an ineffective system for monitoring its franchisees and retailers. Consequently, PTA stated that these major lapses severely compromised the security and integrity of Pakistan’s SIM issuance regime.
How the Investigation Started
This case began with a citizen’s complaint. The individual reported that someone had issued and activated two SIM cards against their CNIC without their consent or physical presence.
Acting on this complaint, PTA raided two Lahore-based Zong franchise outlets back in October 2025. During these raids, officials recovered biometric verification devices, laptops, mobile phones, and hundreds of highly suspicious SIM cards. Moreover, authorities registered an FIR in connection with the matter.
Suspicious Sales & Strict Regulations
During the investigation, PTA discovered irregular activation patterns linked to biometric devices from two franchise channels. For instance, one device processed a suspiciously high number of SIM activations for female CNIC holders across multiple districts. Meanwhile, another device showed concentrated activations originating outside its designated geographical area, specifically in Sheikhupura. Therefore, PTA viewed these trends as suspicious and indicative of a weak monitoring framework.
PTA strictly noted that telecom operators hold sole responsibility for all SIMs sold on their networks. This rule applies whether the company sells them directly or through independent retailers. PTA firmly rejected Zong’s argument that independent franchisees were responsible for the misconduct at the retail level. The regulator highlighted that the Subscribers Antecedents Verification Regulations clearly place the responsibility on the operator for any SIM sold by any means.
The Zong Defense & Final Verdict
On the other hand, Zong defended its operations. The company maintained that it processed all SIM activations through PTA-approved biometric procedures. Furthermore, Zong stated that its internal reviews showed no evidence of system manipulation, process bypassing, or biometric failures.
The operator argued that the flagged devices handled only a tiny fraction of total franchise sales. Zong also claimed that demographic and geographic trends stayed within normal operational limits. Therefore, internal compliance alerts never triggered. Additionally, Zong informed the regulator about its recent disciplinary actions. The company blacklisted the involved individuals, blocked hundreds of suspicious SIMs for re-verification, and took strict action against the responsible franchisees.
Despite these explanations, PTA concluded that Zong could not escape responsibility. The regulator observed that weak enforcement directly allowed unauthorized SIMs to activate without the complainant’s consent, despite an extensive regulatory framework.
Finally, PTA directed Zong to deposit the PKR 116.7 million fine within 10 days under Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996. If the company fails to comply, PTA warned it will trigger further legal proceedings under the law.
