Mobile Operators Raise Packages by Up to 50%, IT Ministry Admits

The Ministry of Information Technology and Telecommunication has clarified that recent increases in mobile package tariffs ranged between 20 and 50%, rejecting claims that any operator had raised prices by 150%.

In its official response to the Senate, the Ministry dismissed allegations of a sudden jump from Rs 600 to Rs 1500, noting that no such single increase occurred during its review. Instead, the Ministry stated that mobile operators implemented gradual tariff hikes during the current fiscal year 2024- 25. Examples cited include packages rising from Rs 1500 to Rs 1799 (20% increase) and from Rs 999 to Rs 1499 (50% increase).

Macroeconomic Factors Driving Tariff Hikes

Federal Minister Shaza Fatima Khawaja attributed the rising mobile tariffs to persistent macroeconomic pressures. Fuel prices have surged by 158% between March 2021 and May 2024, increasing from Rs 111.9 per liter to Rs 288.49. Meanwhile, inflation climbed 77% over the same period, and the Pakistani rupee depreciated 44% against the US dollar, falling from Rs 156.02 to Rs 278.25.

The Ministry also highlighted the sharp rise in the policy interest rate, which increased from 7% to 22%, raising financing costs for telecom operators. Despite these challenges, the average annual revenue growth of the mobile sector over the past five years remained at only 9%, significantly lower than the 17% average annual inflation, resulting in what the Ministry described as “value erosion” in the industry.

Regulatory Oversight

The Ministry reaffirmed the government’s authority under the Pakistan Telecommunication (Re-organization) Act, 1996 and the Telecommunication Rules, 2000, emphasizing its right to regulate tariffs and intervene if consumer interests are threatened.

In line with Mobile Tariff Regulations, 2025, Jazz has been designated a Significant Market Power (SMP) operator in Pakistan’s retail mobile sector. As a result, Jazz must obtain prior approval from the Pakistan Telecommunication Authority (PTA) before launching or revising tariffs. Non-SMP operators can revise prices independently but must notify consumers in advance. PTA retains the right to step in if tariffs negatively affect users.

The Ministry’s statement underlines that PTA continues to actively oversee mobile pricing, particularly in the context of rising consumer concerns over service costs.

Despite these measures, questions remain about unauthorized packages that are still being applied to users without SIM holders’ approval. Why are telecom operators still able to push packages without explicit consent? Is there any mechanism in place to fully protect consumers from hidden charges? Regulators have yet to provide a clear solution, leaving many consumers unsure whether they are being fairly charged.