ISLAMABAD: The Senate Standing Committee on Information Technology and Telecommunication was informed on Monday that there was no evidence of cartelisation in Pakistan’s telecom sector. The committee sought clarification from the Pakistan Telecommunication Authority (PTA) regarding an audit report related to a tariff increase by the country’s largest telecom company, Jazz.

PTA Chairman retired Major General Hafeez Ur Rehman assured the committee that no cartelisation had been allowed within the sector. As the significant market player (SMP), Jazz must seek approval from the PTA before making any changes to its tariff rates, he explained.

Senator Palwasha Khan, chairperson of the committee, questioned how Jazz had managed to collect over Rs6 billion more from its customers. In response, Rehman clarified that Jazz had raised its tariffs by 19pc in 2024, but this increase was regulated by the PTA to maintain market balance.

“If Jazz exceeds the permitted tariff limit, the PTA ensures the excess amount is refunded,” he stated. Despite these regulatory constraints, Jazz remains a well-managed, profitable company, he added.

Slams Ufone for incurring losses; PTA rejects cartelisation claims

The committee also raised concerns about the financial performance of Ufone, one of the four telecom companies operating in Pakistan. It was revealed that Ufone, the state-owned entity, was the only telecom operator making losses. Senator Humayun Mohmand criticised the performance, noting that since the government holds the majority shares in Ufone, it should not be making losses.

In contrast, Senator Afnanullah pointed out that Ufone’s management is entirely from the private sector, with no government interference in its operations.

Addressing the committee’s concerns about quality issues in the telecom sector, the chairman PTA said the problem could not be resolved until a fresh spectrum auction was held. He further informed the committee that he had recently met with the prime minister, requesting that the auction take place soon. The IT secretary added that Pakistan is currently using 274 MHz of spectrum, but internet issues persist due to insufficient capacity, as well as ongoing legal cases related to some spectrum allocations.

When questioned by Senator Saifullah Niazi about the companies involved in the court cases, PTA officials refrained from naming them. The IT secretary shifted the responsibility to the Frequency Allocation Board, while the PTA clarified that the issue was being managed by PEMRA.

The committee also voiced concerns over the recent taxes imposed on e-commerce transactions. The IT secretary explained that the matter falls under the Ministry of Commerce, with the Federal Board of Revenue (FBR) responsible for imposing taxes. The discussion on e-commerce taxation and Ufone’s financial losses will continue in the next committee meeting.

Published in Dawn, August 26th, 2025