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Pakistan’s largest telecom operator, Jazz, has been accused of overcharging its subscribers by Rs6.58 billion during the fiscal year 2023-24, according to a recent audit report. The findings raise serious concerns about both Jazz’s billing practices and the Pakistan Telecommunication Authority’s (PTA) regulatory oversight.
Audit Findings: Packages Priced Above Approved Tariffs
The audit revealed that Jazz billed customers higher than the tariffs approved by PTA, directly violating the Pakistan Telecommunication (Re-Organization) Act, 1996, and Telecom Consumer Protection Regulations, 2009.
A comparative analysis showed inflated prices across several weekly and monthly bundles. For instance:
- “Monthly Super Duper” was billed at Rs1,043 instead of the approved Rs955.
- “Monthly Freedom” costs Rs1,739 against the official rate of Rs1,652.
- “Monthly YouTube & Social Offer” was charged at Rs434 instead of Rs348, leading to Rs2.12 billion in overbilling on this package alone.
Collectively, these discrepancies forced millions of subscribers to pay billions more than authorized.
PTA’s Role Under Scrutiny
The report criticized PTA for failing to enforce tariff compliance. Despite being tasked with safeguarding consumer rights, the regulator not only allowed Jazz quarterly tariff increases of up to 15% but also issued blanket approvals that undermined consumer protections.
Audit authorities called PTA’s justification, that Pakistan’s telecom sector is “deregulated”—untenable. They argued such leeway violated the spirit of consumer protection laws, leaving subscribers vulnerable to arbitrary pricing.
During a Departmental Accounts Committee (DAC) meeting in December 2024, PTA was asked to furnish complete records of tariff revisions for Jazz, but failed to provide documentation before the report was finalized.
Industry Context: Market Dominance & Consumer Impact
With over 73 million users and nearly 40% market share, Jazz is Pakistan’s largest telecom operator. The recent exit of Telenor has further reduced competition, leaving the sector concentrated among a handful of players.
Experts warn that this market dominance, combined with lax regulation, allows operators to bypass safeguards and impose unilateral price hikes. The audit emphasized the urgent need for stricter oversight, enforcement of tariff rules, and accountability for officials who enabled unauthorized charges.
The Auditor General of Pakistan (AGP) has recommended a full inquiry into the matter and implementation of DAC directives. Consumer rights advocates argue that the case highlights a deeper structural issue, where deregulation without effective oversight risks turning competition into unchecked profiteering.
If left unaddressed, industry insiders fear that such practices could further erode public trust in Pakistan’s telecom sector, one of the country’s most revenue-generating industries.
