Govt Admits Up to 50% Hike in Mobile Package Prices

The Ministry of Information Technology and Telecommunication has acknowledged that cellular mobile operators have increased mobile package prices by up to 50 percent during the current financial year, while dismissing claims of a 150 percent jump in monthly tariffs.

In a written response submitted to the Senate, the ministry said its review did not find any single instance of a package price rising from Rs600 to Rs1,500. Instead, it stated that operators introduced gradual adjustments, with increases ranging from around 20 percent—such as packages moving from Rs1,500 to Rs1,799—to as much as 50 percent, including hikes from Rs999 to Rs1,499.

The response, attributed to Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja, linked the higher mobile package prices to sustained macroeconomic pressures.

It noted that fuel prices rose by 158 percent between March 2021 and May 2024, climbing from Rs111.9 per litre to Rs288.49. During the same period, inflation increased by 77 percent, while the Pakistani rupee depreciated 44 percent against the US dollar, weakening from Rs156.02 to Rs278.25.

The ministry also highlighted a steep rise in the policy interest rate, which jumped from 7 percent to 22 percent, significantly increasing financing costs for telecom operators.

Despite these challenges, the ministry said the mobile industry’s average annual revenue growth remained at 9 percent over the past five years, well below the average annual inflation rate of 17 percent between 2020 and 2024, resulting in what it described as “value erosion” in the sector.

On the regulatory side, the government reaffirmed its authority under the Pakistan Telecommunication (Re-organization) Act, 1996, and the Telecommunication Rules, 2000, to regulate tariffs and protect consumer interests. The Pakistan Telecommunication Authority (PTA) has designated Jazz as a Significant Market Power (SMP) operator, requiring prior approval for any revision or launch of mobile packages under the Mobile Tariff Regulations, 2025.

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