Pakistan Telecommunication Authority (PTA) has come under intense scrutiny after the Auditor General of Pakistan (AGP) unearthed a series of serious regulatory, financial and governance failures, ranging from weak enforcement against telecom fraud to declining revenues, unauthorized benefits for top officials and failure to regulate data centers, causing potential losses to the national exchequer.
The audit report for FY2024-25 paints a troubling picture of the country’s telecom regulator, concluding that systemic weaknesses have undermined PTA’s financial sustainability, regulatory effectiveness and credibility as an independent watchdog.
One of the most significant findings is PTA’s failure to bring data centers under its licensing regime despite their falling within the legal definition of “telecommunication systems.” The AGP warned that the omission not only deprived the government of potential revenues but also left a critical segment of digital infrastructure outside regulatory oversight, creating security risks.
The report also highlighted a sharp decline in PTA’s revenues over the past three years. Total income dropped from Rs94.18 billion in FY2022-23 to Rs35.35 billion in FY2024-25, largely because of repeated delays in the auction of 5G spectrum. According to the audit, revenue is projected to fall even further to just Rs4.64 billion in FY2025-26 if corrective measures are not taken.
While revenues declined, PTA’s expenditure continued to rise, increasing from Rs3.32 billion to Rs5 billion over the same period due to growing salary costs, administrative expenses and legal charges.
The AGP also criticized PTA for failing to transfer Rs4.92 billion in surplus funds to the Federal Consolidated Fund by the end of the financial year, describing it as a violation of the Pakistan Telecommunication (Re-organization) Act, 1996. Although PTA argued that surplus funds are transferred only after audited accounts are finalized, auditors rejected the explanation, insisting that the law requires timely remittance.
The report raises serious questions over PTA’s handling of telecom fraud involving illegal SIM activations. It found that Pakistan Telecommunication Mobile Limited (Ufone) was issued a show-cause notice after investigators established that franchisees illegally activated SIMs using biometric devices shifted across provinces without subscribers’ knowledge. Despite evidence of organized fraud involving around 2,000 SIMs, PTA had not imposed statutory penalties or initiated criminal proceedings by the time of the audit.
Similarly, auditors found that PTA failed to issue enforcement orders to recover outstanding Annual Regulatory Dues exceeding Rs870 million from telecom operators despite issuing show-cause notices.
Consumer protection also came under criticism. The report noted that PTA failed to conduct mandatory nationwide Quality of Service surveys for fixed broadband providers despite regulations requiring regular monitoring of broadband speeds, latency, uptime and other performance indicators. Auditors said the lapse weakened consumer protection and reduced oversight of broadband service quality.
The AGP further questioned PTA’s internal governance, alleging that authority members approved and received Rs28.69 million in inadmissible salaries, allowances and perks without mandatory federal government approval, creating what it described as a conflict of interest. The audit recommended recovery of the payments in line with earlier Public Accounts Committee directives.
Another governance issue highlighted was the failure to transfer ownership of the Regional Telecom Training School building in Islamabad into PTA’s name despite the property being vested in the regulator nearly three decades ago, exposing the authority to legal and custodial risks.
The audit also questioned the legal validity of PTA’s institutional framework, pointing out that the authority itself had never been formally notified through an official gazette under the relevant provisions of the law, raising concerns over statutory compliance and governance legitimacy.
Concluding the report, the Auditor General called for urgent reforms, including bringing data centers under licensing, conducting timely 5G spectrum auctions, strengthening regulatory enforcement, recovering outstanding dues, improving financial discipline and ensuring compliance with statutory requirements to restore confidence in Pakistan’s telecom regulator.
