Banks and Telecome Companies Robbed Rs18 Billion from Customers via SMS Alerts, Senate Committee Questions Pricing

Pakistan’s Senate Standing Committee on Finance has raised serious concerns over banks charging customers up to Rs3.40 per SMS alert, calling for a detailed review of pricing practices.

During the committee meeting, lawmakers questioned banking and telecom officials over the sharp increase in SMS charges, which have surged from around 40 paisas in 2021 to current levels — an increase of nearly 800 percent.

Officials informed the panel that an average banking customer receives multiple transaction alerts daily, resulting in monthly charges that can reach around Rs300 or more. Senators expressed concern over the growing financial burden on consumers and demanded transparency in the fee structure.

Banking representatives stated that SMS alerts are mandatory for security and regulatory compliance, while telecom operators cited infrastructure and secure delivery costs as reasons for higher pricing. However, lawmakers challenged the justification, noting that the actual cost of sending an SMS is significantly lower.

The committee was also told that banks collectively pay billions of rupees annually to telecom companies for these services, yet pricing disparities remain a key concern. Senators questioned whether excessive charges and intermediaries are inflating costs for consumers.

The panel has directed banks and telecom companies to submit detailed data on pricing, costs, and revenues, signaling a possible policy intervention to protect consumers from overcharging.