Senate body orders probe into ‘overcharging’ by telco

The Senate Standing Committee on Information Technology and Telecommunication has formed a subcommittee to investigate claims that a major telecom company overcharged customers by Rs5.83 billion beyond the tariffs approved by the Pakistan Telecommunication Authority (PTA). The subcommittee, led by Senator Dr Afnanullah Khan, will review the alleged overcharging by Jazz and the regulatory actions taken by the PTA.

This decision came after a tense exchange between PTA officials and the Auditor General of Pakistan (AGP) representatives. When the PTA chairman threatened to resign if any corruption allegations were made against him, Committee Chairperson Senator Palwasha Khan stepped in to de-escalate the situation. Jazz responded by stating that the issue involves two government bodies and that the company would present its perspective if requested by any relevant body.

The matter stems from a 2024 audit of the PTA, which found that the telecom regulator permitted a 15% tariff hike for Jazz, exceeding the permitted 3%. The audit recommended consulting the Competition Commission of Pakistan (CCP) on the tariff policy. PTA Chairman retired Maj Gen Hafeezur Rehman opposed the proposal, arguing that if tariffs are determined by the CCP, the PTA should not bear responsibility for ensuring service quality.

He suggested opting for a forensic audit instead. The PTA chairman affirmed his intention to resign if any evidence of overcharging by Jazz is found, as the regulator had reviewed mobile packages before their release and ensured adherence to the approved tariff rates. However, the audit team raised questions about the situation.

Senator Palwasha Khan subsequently authorized the formation of the subcommittee, which will study tariff approvals, packages, and billing records to ascertain if customers were charged beyond the authorized rates.