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Serious transparency concerns have hit Pakistan’s telecom sector today. A massive financial discrepancy of nearly Rs. 19 billion has surfaced between the Universal Service Fund (USF) and the Ministry of Information Technology and Telecommunication (MoITT).
This gap raises alarming questions about financial reporting within one of the country’s most critical sectors.
USF vs. MoITT: The Financial Disconnect
The core dispute lies in the reported subsidy figures. The USF claims it awarded Rs. 141.703 billion to telecom operators for projects in unserved and underserved areas.
However, the Ministry contradicts this. They maintain that the total utilisation of the fund stands at only Rs. 124.199 billion. This exposes a substantial gap that officials have not yet reconciled. It remains unclear if this difference represents unutilised allocations, pending projects, or simple accounting inconsistencies.
Despite these alarming figures, the Ministry asserts that all contracts awarded over the past three years complied with Public Procurement Regulatory Authority (PPRA) rules. They claim no procedural violations occurred during the awarding process.
Where Did the Money Go?
The Ministry states that they distributed the utilised funds across various provinces. Balochistan received the largest share, highlighting a focus on remote development.
Here is the official breakdown of fund utilisation:
| Region | Amount Utilised (PKR) |
| Balochistan | 52.309 Billion |
| Punjab | 26.032 Billion |
| Khyber Pakhtunkhwa | 24.227 Billion |
| Sindh | 20.203 Billion |
| ICT (Islamabad) | 1.016 Billion |
| Multi-Provincial | 409.9 Million |
Market Dominance Concerns
Documents reveal another controversy as well. There’s a high concentration of subsidies among a few select players. This raises valid concerns regarding market dominance and equitable distribution.
PTCL and Ufone together secured approximately Rs. 77 billion, accounting for a staggering 54% of the total subsidies awarded.
The distribution among major operators is as follows:
- Ufone: Rs. 40.494 billion (28.6%)
- PTCL: Rs. 36.648 billion (25.9%)
- Telenor: Rs. 30.041 billion
- Jazz: Rs. 13.784 billion
- Nayatel: Rs. 6.007 billion
Smaller shares went to Zong, Wateen, WorldCall, and others.
The Bigger Picture: USF
The USF, established in 2007, bridges the digital divide. Before its launch, national telecom coverage stood at just 44%. Since then, the fund has financed nearly 150 projects to expand mobile, broadband, and fibre optic services. Telecom operators fund this initiative by contributing 1.5% of their annual revenues, generating approximately Rs. 7-8 billion per year.
However, this emerging contradiction in figures has intensified calls for action. Critics are now demanding independent audits, clearer financial disclosures, and strict parliamentary oversight. The unresolved gap underscores an urgent need for better coordination between the USF and the MoITT to ensure public funds are effectively utilised.
