Audit says Jazz overbilled Rs6.6b; regulator faulted for lax oversight

Jazz overbilling

Pakistan’s biggest mobile operator, Jazz, has been accused of overbilling its customers by Rs6.58 billion, with a government audit faulting the telecom regulator for enabling arbitrary price hikes.

The Auditor General of Pakistan, in a report for fiscal 2023-24, said the Pakistan Telecommunication Authority (PTA) failed to enforce rules requiring prior approval of tariffs. While PTA had cleared certain Jazz service packages, auditors found the company charged beyond approved rates, violating consumer-protection regulations under the Telecom Act of 1996.

Jazz argued that the telecom market is deregulated and claimed PTA had allowed operators to raise tariffs by up to 15% per quarter and cut incentives by 5% during 2024, as long as advance notice was given. The company said it notified PTA of a November hike accordingly.

Auditors dismissed the defense, saying PTA’s blanket approvals undercut its mandate to safeguard consumers and gave cover for excessive billing. “The claimed approvals do not justify the scale and nature of overcharging observed,” the report noted.

The case was presented to the Departmental Accounts Committee in December, where PTA failed to provide full tariff approval records, fueling suspicions of negligence or complicity. The audit has called for an inquiry to fix responsibility on both Jazz and the regulator.

In a statement to Nukta, Jazz said it complies with all regulatory requirements and introduces tariffs only after formal PTA approval. The company said it is reviewing the audit observations but remains confident it acted within the law.