The Pakistan Telecommunication Authority (PTA) has imposed a massive Rs. 77.8 million fine on Zong Pakistan (CMPak Ltd.). PTA penalized Zong for failing to enforce mandatory 100-meter geo-fencing rules on its biometric verification system (BVS) devices during SIM sales.
The enforcement action stems from a PTA field inspection conducted on March 30, 2026. Regulators caught an authorized sales representative from CMPak’s Taxila franchise operating entirely out of bounds. Specifically, the representative was conducting SIM sales at I-10 Markaz in Islamabad. Furthermore, the franchise carried out this activity without securing the required Door-to-Door or Kiosk approval from the regulator.
Here is a quick breakdown of the violation:
| Detail | Fact |
| Operator | Zong Pakistan (CMPak) |
| Fine Amount | Rs. 77,800,000 |
| Location of Breach | I-10 Markaz, Islamabad |
| Offending Franchise | Taxila Franchise |
| Primary Offense | Operating BVS devices outside the 100-meter authorized geo-location |
PTA Rejects the Defense Presented by Zong
CMPak strongly contested the enforcement action. The company argued that the breach was an isolated operational lapse caused by a single Data Sales Officer (DSO). It insisted this was not a systemic failure of its broader compliance network.
Moreover, CMPak emphasized that every SIM involved underwent successful biometric and NADRA verification. Therefore, no fake or anonymous SIMs bypassed the system.
Additionally, the operator claimed it took immediate corrective measures. After learning of the violation, CMPak fired the responsible DSO. The company also issued a show-cause notice and a warning letter to the Taxila franchise. Finally, it circulated compliance advisories to strengthen its internal monitoring mechanisms.
However, PTA firmly rejected these defenses. The regulator clarified that successful biometric verification does not excuse a separate geo-fencing breach. Biometric verification confirms a subscriber’s identity. Meanwhile, geo-fencing ensures BVS devices stay within authorized locations to prevent the unauthorized movement of equipment and untraceable SIM issuances. Consequently, these are two independent regulatory obligations.
PTA also dismissed CMPak’s attempt to shift the blame to the franchise or the individual DSO. According to the Subscribers Antecedents Verification Regulations and operator license conditions, the company retains direct, statutory responsibility for all SIM sales across its authorized network.
Crucially, PTA noted that correcting an issue after getting caught does not erase the actual offense. Allowing telecom operators to neutralize established violations through subsequent corrective actions would completely undermine the mandatory regulatory framework. Geo-fencing is an essential safeguard, not merely a procedural formality.
After examining the show-cause notice, compliance reports, and hearing submissions, PTA concluded that CMPak failed to exercise effective supervision over its sales channel.
As a result, the regulator held CMPak liable under Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996. PTA ordered the company to deposit the Rs. 77,800,000 fine within 10 days of receiving the order. Otherwise, the regulator warned it would initiate further legal action against the operator.
