Jazz overcharging probe: Senate panel checks Rs 5.83bn audit claim on 15% tariff rise

A Senate committee has set up a subcommittee to find out whether Jazz, Pakistan's biggest mobile operator, charged its customers more than regulated tariffs allow. The audit objection behind the inquiry puts the excess at Rs 5.83 billion, according to Dawn's report of the meeting; the committee's agenda had cited a figure of Rs 6.58 billion.

What the audit says

• The Auditor General's objection says the Pakistan Telecommunication Authority (PTA) allowed Jazz a tariff increase of 15% when, in the auditors' reading of the rules, only 3% was permissible.
• The difference, charged to prepaid and postpaid users through packages and call rates, is where the billions come from.
• The audit also suggested that the Competition Commission of Pakistan be consulted on tariff policy.

What PTA says

PTA Chairman Maj Gen (retd) Hafeezur Rehman told the Senate Standing Committee on IT and Telecommunication, chaired by Senator Palwasha Khan, that he would resign if even one rupee of overcharging beyond PTA-approved tariffs was proved. He said the regulator had acted transparently and offered a forensic audit.

Who will look into it

The committee formed a subcommittee headed by Senator Dr Afnanullah Khan to examine:

• the tariff approvals PTA gave Jazz,
• the packages Jazz sold under them, and
• the billing records, to see whether customers paid more than the regulated rate.

No deadline has been announced for its findings.

Also on the committee's desk

The agenda circulated before the meeting also listed Etisalat's outstanding payment of about $800 million from PTCL's privatisation, an alleged Rs 172 billion call-centre fraud being investigated by the FIA, and mobile service closures in Lakki Marwat.

What it means for you

Nothing changes on your bill today, and no refund has been ordered. A finding against Jazz or PTA could lead to one, but that is months away at best. In the meantime:

• Check what you actually pay. Your balance and package charges are shown on the Jazz World app and by dialling *111#. Our guide to Jazz number check and balance codes lists the codes that work.
• Know the tax on every load. Part of every recharge is tax, not tariff. The mobile load tax calculator shows how much of a Rs 100 or Rs 500 load reaches your balance.
• Complain to PTA if you think a package deducted more than it advertised: PTA's complaint portal is at complaint.pta.gov.pk. Keep the SMS and the time of the deduction.

We will update this story when the subcommittee reports.