During a recent session, the Senate Standing Committee on Information Technology and Telecommunication was informed that there is no proof of cartelization within Pakistan’s telecom industry.
Retired Major General Hafeez Ur Rehman, Chairman of the Pakistan Telecommunication Authority (PTA), briefed lawmakers that telecom operators, including Jazz, must seek regulatory clearance before adjusting tariffs. Rehman emphasized that the PTA has not allowed any anti-competitive practices in the sector.
Jazz’s Tariff Hike Explained
The committee raised questions about Jazz reportedly collecting an additional Rs6 billion from customers. Rehman explained that the company increased its tariffs by 19% in 2024, a move officially approved by the PTA to maintain market stability. He added that if any operator exceeds the authorized limits, the regulator ensures that affected customers are reimbursed.
Ufone’s Financial Struggles Under Scrutiny
The panel also reviewed the financial status of Ufone, noting that it is currently the only telecom operator reporting losses. Senator Humayun Mohmand criticized this situation, arguing that a state-associated entity should not operate at a loss. In response, Senator Afnanullah highlighted that Ufone’s operations are fully managed privately, with no government interference, suggesting that losses reflect business realities rather than policy failures.
Network Upgrades Hinge on Spectrum Auction
On the topic of network performance, Rehman indicated that meaningful improvements would require a new spectrum auction. He revealed that he has formally requested the prime minister’s approval for the auction, underlining that limited spectrum availability and ongoing legal disputes are key constraints affecting internet services.
Pakistan currently utilizes 274 MHz of spectrum, according to the IT secretary, but unresolved allocation issues continue to impede service expansion. When asked about ongoing litigation involving telecom operators, PTA officials refrained from naming specific companies, pointing instead to the Frequency Allocation Board and PEMRA as the responsible authorities.
E-Commerce Tax Concerns
The committee also touched on taxation in the e-commerce sector. The IT secretary clarified that tax matters fall under the Ministry of Commerce and the Federal Board of Revenue (FBR). Further discussions on both Ufone’s financial health and e-commerce taxation have been scheduled for the next committee meeting.