Audit Report Alleges Rs 6.58bn Overcharging in Jazz Packages, PTA Slammed for Regulatory Failure

Pakistan’s Auditor General has alleged that mobile operator Jazz overcharged customers by a staggering Rs6.583 billion in FY2023-24 by billing above regulator-approved tariffs for its weekly and monthly mobile packages.

The audit points to a monthly snapshot of Rs 692.222 million in excess charges across selected plans, describing the episode as evidence of regulatory failure and weak consumer protection on the part of the Pakistan Telecommunication Authority (PTA).

Under Section 4(1)(m) of the Pakistan Telecommunication (Re-Organization) Act, 1996 (amended 2014), and Regulation 10(1)(i) of the Telecom Consumer Protection Regulations, 2009, no operator can launch or charge tariffs without PTA’s prior approval.

In its defense, PTA argued that telecom is a deregulated industry where it only ensures competition and prevents predatory pricing. The regulator further noted that it had, through letters dated 12 February and 12 August 2024, allowed Jazz to increase prices by up to 15% per quarter and reduce incentives by up to 5%, subject to prior intimation. Jazz subsequently increased package prices on 12 November 2024 with intimation to PTA.

Auditors dismissed this response as “not tenable,” asserting that granting blanket approval for arbitrary quarterly hikes violated the spirit of consumer protection and exposed PTA’s negligence. The Departmental Accounts Committee (DAC), in its meeting on 26 December 2024, directed PTA to furnish a full record of all tariff approvals and increases.

Key Findings

Selected Packages from Audit Analysis

The audit concludes that Jazz’s unauthorized price increases, coupled with PTA’s blanket approvals, reflect gross negligence in regulation and a blatant disregard for consumer rights. With DAC now demanding a detailed record, both the operator and regulator face mounting pressure.

Jazz’s Response

Jazz is a responsible corporate entity and has consistently operated in full compliance with Pakistan’s regulatory framework. All tariffs and services are launched only after formal approvals by the Pakistan Telecommunication Authority (PTA), in accordance with clearly defined processes.

We are reviewing the observations shared in the audit report on the Pakistan Telecommunication Authority (PTA) for Audit Year 2024–25. We remain confident that Jazz has acted lawfully and transparently at every step, in full alignment with PTA’s rules and regulatory procedures, including those related to tariff approvals and mandated contributions.

We trust that the matter will be reviewed in the context of regulatory facts, documented approvals, and institutional roles.

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