Senate Standing Committee on Finance, chaired by Saleem Mandviwalla, examined the cost of SMS transaction alerts, which are mandatory under regulations by the State Bank of Pakistan (SBP).
According to the report shared by the Pakistan Banks Association (PBA), banks collectively earned Rs 18.7 billion from SMS alert fees in 2025, but spent Rs 25.6 billion to telecom companies, resulting in a net loss of Rs 6.9 billion.
Customers are reportedly being charged up to Rs 3.40 per SMS, a steep increase from just 42 paisas in 2021. An average banking customer receives roughly three SMS alerts daily, amounting to Rs 300-400 per month. The committee highlighted that banks are effectively passing both banking and telecom costs onto customers, while still operating at a loss.
Deputy Governor of SBP, Inayat Hussain, reminded the committee that banks must comply with regulatory requirements to send transaction alerts. He also noted that free alternatives, such as mobile app push notifications, are available. However, members rejected this justification, pointing out that customers should not bear the burden of high SMS pricing.
Telecom representatives defended their charges, citing security and infrastructure costs, but faced sharp criticism. Senator Anusha Rahman remarked that “SMS services costing 1-2 paisas are being sold for multiple rupees,” calling the practice “excessive.”
Data from banks shows that 243 million accounts exist, but only 18 million accounts are charged for in-branch SMS alerts. The total number of SMS messages sent in the year, excluding marketing messages, was 11.4 billion, at an average cost of Rs 4.2 per SMS.
The committee concluded the session by directing banks and telecom operators to submit a one-year detailed record of SMS-related costs, revenues, and charges. Chairman Mandviwalla assured that overbilling issues would be resolved following a thorough review.
