PTA Rejects Rs 6.58bn Jazz Overcharging Claim, Says Audit Misread Tariff Approval

The Pakistan Telecommunication Authority has rejected an audit claim that Jazz overcharged mobile users by Rs 6.58 billion, saying the conclusion stemmed from a misinterpretation of an approved tariff revision.

In a detailed response submitted to the Senate Standing Committee on Information Technology and Telecommunication, the regulator said Jazz had not carried out any unauthorized overcharging and that all tariff changes were approved under the applicable regulatory framework.

PTA said the audit had interpreted an approval issued on February 12, 2024, allowing a 15% tariff increase, as permission for a 3% quarterly increase. According to the regulator, that interpretation resulted from an inadvertent placement of a signature used for attestation purposes.

The authority said it had provided the Auditor General’s office with the relevant approval notices, tariff records, and system-generated audit trails. It added that the records had been verified, and certified copies were also furnished for scrutiny.

PTA Says Jazz Tariff Changes Were Approved

PTA said its legal mandate allows it to regulate telecom tariffs, particularly for operators classified as having significant market power.

The regulator said Jazz falls under this category and therefore requires PTA approval for tariff ceilings and revisions. By contrast, non-SMP operators have greater freedom to revise tariffs based on business decisions.

PTA said it approved revisions in 35 Jazz packages during 2024 after considering operating costs, returns on investment, market competition, and consumer interests.

According to the authority, Jazz has more than 100 packages in its portfolio, while the average annual price increase across all of its packages during 2024 was 13.6%.

The regulator reiterated before the committee that the tariff revisions were approved and maintained that the Rs 6.58 billion overcharging claim was not supported by the regulatory record.

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