ISLAMABAD: In a major move aimed at protecting consumer rights, the Pakistan Telecommunication Authority (PTA) has proposed ending the practice of prepaid mobile balance expiry, suggesting that users’ remaining balance should stay valid for the entire active life of their SIM cards.
The proposal, issued through a consultation paper, seeks public and industry feedback by March 16, 2026, and could significantly reshape Pakistan’s prepaid-dominated mobile market, where nearly 97 percent of subscribers use prepaid services.
Balance Forfeiture Under Scrutiny
PTA noted that many Cellular Mobile Operators (CMOs) currently forfeit or confiscate unused prepaid balance after expiry of validity periods ranging from 30 days to 365 days, depending on recharge amount. This has led to consumer complaints, particularly from users who maintain low balances, use secondary SIMs, travel abroad, or temporarily suspend usage due to personal circumstances.
“Prepaid balance represents money paid in advance by consumers and should be treated as the subscriber’s own funds rather than operator revenue,” the regulator emphasized.
Industry Practices Vary
According to PTA’s analysis:
• Jazz offers unlimited balance validity as long as the SIM remains active.
• Telenor temporarily blocks expired balance but reinstates it upon recharge.
• Zong confiscates unused balance after validity expiry.
• Ufone expires remaining balance after the defined validity period despite prior SMS notifications.
PTA observed that models adopted by Jazz and Telenor demonstrate that consumer-friendly mechanisms are both technically and commercially feasible.
Global Benchmark
Citing international best practices, PTA referenced policies in the United Kingdom where operators like Vodafone UK allow prepaid balances to remain valid as long as the SIM is active, and even permit refunds of unused credit within a specified period after disconnection.
Key Proposal
Under the proposed framework:
• Prepaid balance would remain valid for the entire active life of the SIM, as defined under PTA’s SOP on SIM sale and activation.
• Balance would be linked to the subscriber’s CNIC.
If a SIM is deactivated and no other SIM exists on the same network under that CNIC, the remaining balance would:
- Be restored upon issuance of a new SIM on the same network, or
- Be refunded via bank transfer or mobile wallet, subject to CNIC verification and KYC requirements.
PTA has invited comments from cellular operators, telecom subscribers, and the general public before finalizing its decision. Feedback can be submitted to the Director (Commercial Affairs) at PTA Headquarters in Islamabad.
If implemented, the proposal could mark one of the most significant consumer protection reforms in Pakistan’s telecom sector in recent years, potentially ending the long-standing practice of prepaid balance forfeiture.
