Pakistan’s Ministry of Information Technology and Telecommunication has acknowledged that mobile phone package prices have risen by as much as 50% during the current financial year, while rejecting claims that tariffs have surged by up to 150%.
In a written reply submitted to the Senate, the ministry said its review found no evidence of any single mobile package increasing from Rs600 to Rs1,500. Instead, it said cellular operators implemented incremental price adjustments, with hikes typically ranging between 20% and 50%. Examples cited included packages rising from Rs1,500 to Rs1,799 and from Rs999 to Rs1,499.
The response, attributed to Federal Minister for IT and Telecommunication Shaza Fatima Khawaja, linked the increases to prolonged macroeconomic pressures facing the telecom sector. According to the ministry, fuel prices climbed by 158% between March 2021 and May 2024, rising from Rs111.9 per litre to Rs288.49. Over the same period, inflation increased by 77%, while the Pakistani rupee depreciated by 44% against the US dollar, weakening from Rs156.02 to Rs278.25.
The ministry also pointed to a sharp rise in borrowing costs, noting that the policy interest rate increased from 7% to 22%, significantly raising financing expenses for telecom operators.
Despite these pressures, the government said the mobile industry’s average annual revenue growth stood at about 9% over the past five years. This, it added, was well below the average annual inflation rate of 17% recorded between 2020 and 2024, leading to what it described as “value erosion” in the sector.
On regulation, the ministry reaffirmed that the government has the authority under the Pakistan Telecommunication (Re-organisation) Act, 1996, and the Telecommunication Rules, 2000, to regulate tariffs and safeguard consumer interests. It said the Pakistan Telecommunication Authority (PTA) has designated Jazz as a Significant Market Power (SMP) operator, requiring it to obtain prior approval for the launch or revision of mobile packages under the Mobile Tariff Regulations, 2025.
