The Auditor General of Pakistan (AGP) has uncovered alleged overcharging of Rs6.58 billion by telecom giant Jazz during FY2023-24, sparking calls for a formal inquiry and accountability.
According to the audit, Jazz charged customers beyond tariff rates approved by the Pakistan Telecommunication Authority (PTA) through multiple mobile packages. This practice, auditors said, violated both the Pakistan Telecommunication (Re-Organisation) Act, 1996 and the Telecom Consumer Protection Regulations, 2009, which prohibit operators from charging unapproved rates or launching services without regulatory consent.
A comparative review of Jazz’s weekly and monthly packages confirmed the overcharges. The audit highlighted weak oversight by PTA, noting that blanket approvals for tariff increases contradicted consumer protection principles.
PTA, in its defense, argued that Pakistan’s telecom industry is deregulated, with oversight focusing mainly on Significant Market Power (SMP) operators to prevent predatory pricing. It also emphasized that Pakistan’s Average Revenue Per User (ARPU) remains among the lowest globally.
PTA letters dated February 12 and August 12, 2024, allowed Jazz to raise package prices by up to 15% per quarter and reduce incentives by up to 5%, provided prior intimation was given. Jazz subsequently increased tariffs in November 2024, under PTA’s knowledge.
Auditors, however, dismissed this justification, arguing that such blanket permissions unfairly shifted the financial burden onto consumers. They retrieved records from Jazz’s proposals and PTA’s approvals, finding evidence of excessive consumer costs beyond permissible limits.
The matter was later raised in a Departmental Accounts Committee (DAC) meeting on December 26, 2024, which directed PTA to furnish complete records of tariff approvals for verification. By the report’s finalisation, PTA had not shared the requested details.
The Competition Commission of Pakistan (CCP) noted that its mandate covers exploitative pricing abuses but clarified this issue did not fall under its jurisdiction.
Jazz, meanwhile, rejected the audit findings, insisting it had operated lawfully and transparently. The company stated all tariffs were launched only after formal PTA approvals and expressed confidence the matter would be resolved in light of regulatory documentation and institutional roles.
A formal PTA comment was still pending when this report was filed.
