The federal government has confirmed that mobile phone operators increased the prices of monthly packages by up to 50 percent during the current financial year, according to information shared in the Senate on Monday.
The disclosure came in a written reply by Minister for Information Technology and Telecommunications Shaza Fatima Khawaja to a question raised by Senator Rana Mahmood Ul Hassan regarding recent telecom tariff increases.
Rising Inflation and Fuel Costs Blamed for Telecom Tariff Hikes
The minister said the telecom sector has faced severe financial pressure due to a sharp rise in operational costs. She highlighted that fuel prices rose by 158 percent between March 2021 and May 2024, inflation increased by 77 percent, and the Pakistani rupee depreciated by 44 percent against the US dollar.
In addition, the policy interest rate surged by 214 percent, significantly increasing borrowing and infrastructure financing costs for telecom operators.
According to the government, these economic conditions made price adjustments unavoidable for mobile service providers.
No Evidence of Sudden Jump From Rs. 600 to Rs. 1,500
Addressing public complaints, the minister rejected claims that any operator raised a monthly package directly from Rs. 600 to Rs. 1,500. She said the Pakistan Telecommunication Authority (PTA) investigated such reports and found no such cases.
However, PTA confirmed that gradual price increases ranging from 20 percent to 50 percent were implemented, including revisions from Rs. 999 to Rs. 1,499 and from Rs. 1,500 to Rs. 1,799 during FY 2024–25.
Telecom Revenue Growth Fails to Match Inflation
Despite higher consumer prices, the minister said the mobile industry’s average annual revenue growth remained at just 9 percent over the past five years, while average inflation stood at 17 percent during the same period.
She said this imbalance has resulted in financial strain and value erosion across the telecom sector, limiting companies’ ability to invest in network upgrades and service expansion.
PTA Approval Mandatory for Dominant Market Operators
On regulatory oversight, the minister explained that under the Pakistan Telecommunication (Re-organization) Act, 1996, and Mobile Tariff Regulations, 2025, operators classified as having Significant Market Power (SMP) must obtain prior approval from PTA before revising tariffs.
She confirmed that Jazz has been declared an SMP operator in the retail mobile market and its pricing is subject to PTA approval. For other companies, PTA retains the authority to intervene if pricing negatively affects competition or consumer interests.
Consumer Impact and Regulatory Monitoring
With mobile internet now essential for communication, education, digital payments, and business, rising mobile package prices have added pressure on household budgets. The government said PTA continues to monitor tariff trends to ensure compliance with regulations and protect consumer rights while allowing operators to remain financially sustainable.
