Mobile tariff hikes defended

PTA cites inflation, rupee devaluation and increase in petrol prices

KARACHI:

The Pakistan Telecomm-unication Authority (PTA) has justified the recent increase in retail tariffs by mobile companies, attributing the rise to higher financial costs caused by inflation, fuel price hikes, and the devaluation of the rupee.

"Since March 2021 till May 2024, fuel prices have increased by 158 per cent, inflation by 83 per cent, while the Pakistani rupee has depreciated against the US dollar by 44 per cent. Moreover, the policy rate increased by 214 per cent, increasing the financial cost for operators," the PTA stated in an official reply to an adjournment motion filed by MQM-P MPA Muhammad Asif in the Sindh Assembly.

The lawmaker had raised concerns that not only have mobile package costs increased, but network performance in Karachi and other parts of Sindh remains poor. The Sindh Assembly secretariat had forwarded the matter to the PTA for comment.

In its written response, PTA officials said the authority monitors tariffs and is taking steps to improve network performance. However, they clarified that the PTA regulates tariffs only for "dominant operators" (SMPs), while non-SMP operators are free to set their tariffs independently. Jazz and Telenor have been designated as SMP operators by the PTA.