ISLAMABAD — A bombshell audit report from the Auditor General of Pakistan (AGP) has sent shockwaves through the country’s telecom sector, revealing that Jazz, Pakistan’s largest mobile operator, illicitly collected Rs. 6.58 billion from its subscribers in a single fiscal year. The report not only holds Jazz accountable for overcharging but also directly accuses the Pakistan Telecommunication Authority (PTA) of “weak oversight,” allowing the predatory pricing to occur.
According to the audit, a comparative analysis of various weekly and monthly packages showed that Jazz systematically charged customers more than the rates formally approved by the PTA. For instance, the “Monthly Super Duper” package was sold for Rs. 1,043 instead of the approved Rs. 955, while the “Monthly YouTube & Social Offer” was billed at Rs. 434, an overcharge of Rs. 86 per customer, which accumulated to over Rs. 2.12 billion from this package alone. This practice is a clear violation of the Pakistan Telecommunication (Re-Organization) Act, 1996, and the Telecom Consumer Protection Regulations, 2009, which mandate that operators only charge approved tariffs.
The audit report, finalized in December 2024, did not mince words when assigning blame. It stated that the overbilling was a direct consequence of the PTA’s failure to enforce its own regulations. The report further criticized the regulator for issuing a blanket permission that allowed Jazz to increase prices by up to 15% quarterly and reduce package incentives by up to 5% simply by “intimation,” without rigorous oversight.
In its defense, the PTA claimed that Pakistan’s telecom industry is “deregulated” and that its role is primarily to ensure fair competition rather than to police every tariff change. It argued that Jazz had informed the authority of its price increases, as per the relaxed rules. However, the audit report dismissed this justification as “untenable,” arguing that such blanket approvals were “contrary to the spirit of consumer protection laws.”
For its part, Jazz issued a statement saying it is “reviewing the observations shared in the audit report.” The company expressed confidence that it has acted “lawfully and transparently at every step” and in full compliance with PTA’s rules and procedures.
This incident is particularly alarming given Jazz’s dominant market position. With over 73 million subscribers, representing nearly 40% of the market share, Jazz’s influence has only grown following Telenor’s recent departure. This decrease in competition creates an environment where consumer exploitation can thrive, as operators face fewer incentives to offer competitive pricing and better services.
The AGP’s report has now called for a comprehensive inquiry into the matter, urging that those responsible be held accountable. The findings underscore a pressing need for the PTA to strengthen its oversight mechanisms and actively enforce consumer protection regulations to prevent further exploitation in a sector that generates massive revenue and serves millions of citizens.
