Jazz accused of PKR 6.58B overbilling; audit slams PTA for failing consumers

Pakistan’s leading mobile network, Jazz, has been accused of overbilling its customers by PKR 6.58 billion in unauthorized charges—an overbilling spree flagged by the Auditor General of Pakistan, which also censured the telecom regulator, Pakistan Telecommunication Authority (PTA), for failing to protect consumers.

The damning audit report for fiscal year 2023–24 reveals that despite PTA’s mandate to vet mobile tariffs and shield the public from arbitrary pricing, Jazz charged subscribers well above approved rates.

Under the Pakistan Telecommunication (Re-Organization) Act, 1996, and the Telecom Consumer Protection Regulations, 2009, no operator is permitted to advertise or impose tariffs without explicit PTA approval.

According to auditors, that oversight collapsed. While PTA had approved various Jazz service packages, scrutiny revealed billions charged in excess of those rates. When confronted, Jazz argued that Pakistan’s telecom market is deregulated and that PTA had granted blanket permission for quarterly price hikes of up to 15 percent—and reduced incentives by 5 percent during 2024—provided advance intimation was given. The company said it duly notified PTA of a November increase.

Auditors rejected that defense, stating that PTA’s blanket approval for routine quarterly hikes undermined the very purpose of consumer-protection rules, which are meant to prevent exploitation by dominant operators like Jazz. “The claimed approvals do not justify the scale and nature of overcharging observed,” the audit concluded.

The scandal surfaced before the Departmental Accounts Committee on Dec. 26, 2024, where PTA was directed to provide complete tariff approval records. The regulator, however, failed to produce the documents before the report was finalized, fueling suspicions of regulatory complicity or negligence.

The audit has now called for a full-fledged inquiry to establish responsibility—both within Jazz and PTA—for permitting billions in unauthorized charges to go unchecked.

Responding to a query from Nukta, Jazz said it is a responsible corporate entity that has consistently complied with Pakistan’s regulatory framework. The company maintained that all tariffs and services are introduced only after formal approval from PTA under defined procedures.

Jazz added it is reviewing the audit observations for 2024–25 but remains confident it has acted lawfully and transparently in line with PTA’s rules on tariff approvals and mandated contributions. The company said it trusts the matter will be assessed in the context of regulatory facts, documented approvals, and institutional roles.