Islamabad (Web Desk): The federal government has acknowledged in the Senate that mobile phone operators have raised the prices of their monthly packages by 20 to 50 percent during the current fiscal year.
Federal Minister for Information Technology and Telecommunication, Shiza Fatima Khwaja, informed the Senate session that the telecom sector is facing significant economic pressure, making the price hikes of mobile packages inevitable.
She explained that between March 2021 and May 2024, fuel prices increased by 158 percent, inflation surged by 77 percent, and the Pakistani rupee weakened by 44 percent against the U.S. dollar. Additionally, the policy rate saw a 214 percent increase, all of which led to a substantial rise in financing costs for telecom operators.
However, the minister refuted claims that the price of any monthly mobile package had jumped from 600 rupees to 1500 rupees. She clarified that Pakistan Telecommunication Authority (PTA) had not received any such complaints.
Nevertheless, she confirmed that mobile operators had gradually increased their package prices by 20 to 50 percent, with some packages now ranging from 999 rupees to 1499 rupees and 1500 rupees to 1799 rupees during fiscal year 2024-2025.
Shiza Fatima further explained that despite the rising costs, the average annual revenue growth of the mobile industry over the last five years had only been 9 percent, while the average annual inflation rate during the same period was 17 percent. This imbalance, she noted, had led to a decrease in the overall value of the mobile telecom industry.
Discussing regulatory matters, the minister referred to the Pakistan Telecommunication (Reorganization) Act 1996 and the Mobile Tariff Regulations 2025, which stipulate that operators holding Significant Market Power (SMP) must seek prior approval from the PTA before making any tariff changes.
Shiza Fatima confirmed that Jazz has been designated as an SMP operator in the retail mobile telecom market, meaning its tariffs are subject to PTA approval. She also emphasized that if the tariffs of other operators are deemed harmful to consumer interests, the PTA has the authority to intervene.