A new audit report has raised serious questions over Pakistan’s Universal Service Fund. It identifies irregularities and governance issues worth Rs9.43 billion during 2024-25. Jazz, PTCL, and Ufone all figure prominently in the findings.
The Auditor General’s report flags several problem areas. These include questionable procurement, unauthorized project relocations, and outstanding recoveries. It also cites alleged wasteful spending across the MoITT-backed fund. The report recommends investigations, legal clarification, and stronger oversight.
The biggest objection, worth Rs7.46 billion, concerns seven contracts. They fall under the broadband and optical fibre cable programmes. Audit says the USF restricted bidding to telecom operators contributing to the fund. That, it argues, bypassed the open competitive bidding required under PPRA rules.
Five broadband projects went to Jazz and two fibre projects to Dancom. Audit maintained the restriction violated fairness and value-for-money rules. USF management rejected the observation, citing special USF Rules from 2006. Auditors called the explanation unsatisfactory and sought legal review.
Another finding involves Rs1.007 billion spent relocating 33 mobile tower sites. Projects approved for Punjab and Balochistan moved to different districts. Some shifted outside their original provinces without USF Board approval. Auditors called it evidence of weak planning under Jazz and Ufone projects.
The report also cites Rs845.17 million allegedly wasted on two PTCL fibre projects in Sindh. PTCL connected 246 tower sites and received final payments. However, operators showed no interest in using the new fibre. Auditors recommended a high-level inquiry into the alleged waste.
The audit further notes Rs116.1 million in unrecovered fund contributions. PTCL alone accounts for more than Rs115 million of that amount. It also criticized the USF for skipping a required chartered accountant audit. Auditors warned that pending PTCL litigation could expose the fund to future financial risk.
