Senate committee criticises telecom sector, warns of 5G auction risks

Committee grills regulator and IT ministry over issues like overbilling, spectrum misuse, and stalled audits

ISLAMABAD: The Senate Standing Committee on Information Technology and Telecommunication on Tuesday delivered sharp criticism of telecom operators, regulators, and the IT ministry over issues ranging from over-billing and spectrum misuse to undisclosed board memberships and stalled audits.

Lawmakers warned that continued disputes could undermine investor confidence and derail Pakistan’s long-awaited 5G auction. Chaired by Senator Palwasha Khan, the committee pressed the IT ministry to disclose the names, designations, and remuneration of PTCL’s board members. When officials failed to provide details, the chairperson accused them of concealing facts and branded the PTCL board a “white elephant.” She warned that repeated sessions would be convened until full transparency was ensured.

Audit officials raised concerns over Jazz’s recovery of Rs6 billion in tariffs, saying the Pakistan Telecommunication Authority (PTA) had not provided necessary approval records. Senator Anusha Rahman blasted the regulator for negligence, arguing its inaction was damaging the private sector’s credibility. The committee ordered PTA to submit complete documentation at its next meeting.

Zong also came under scrutiny for spectrum-related disputes, including litigation in the Supreme Court. The committee called for activating the telecom tribunal to resolve such cases swiftly. At the same time, members pledged to approach the government to prevent Telenor from exiting Pakistan, noting that its proposed merger with Ufone—already acquired by PTCL—remains pending before the Competition Commission of Pakistan (CCP).
Officials confirmed that no final merger decision has been made.

The committee demanded a separate briefing on the matter. Senators also raised PTCL’s $800 million dispute with the government, accusing the company of refusing audit scrutiny on the grounds that its majority shareholder, Etisalat, is not subject to public audit requirements. Lawmakers countered that the Supreme Court has already ordered an audit, with Senator Nadeem Bhutto calling PTCL’s refusal unlawful.

On spectrum, PTA officials told the committee that a consultant hired six months ago had recommended resolving pending cases, including Sun TV, before proceeding with the 5G auction. They assured senators that 600 MHz of bandwidth would be available and that recommendations had been forwarded to the Auction Advisory Committee. Prime Minister Shehbaz Sharif has also been consulted on the framework.

Senator Humayun Mohmand urged the ministry to expedite court cases, warning that prolonged disputes would damage investor confidence. Senator Anusha Rahman proposed including the National Accountability Bureau (NAB) and the Accountant General Pakistan Revenues (AGPR) in the auction committee to ensure transparency and prevent audit objections. PTA supported NAB’s oversight role, while confirming no final decision has been taken on mergers.

The session also touched on foreign entrants. Senator Afnanullah alleged that Elon Musk’s Starlink had conducted discriminatory campaigns against Pakistanis on social media, questioning whether the company should be allowed to operate locally. PTA confirmed Starlink had applied for a Long-Distance International licence but said approval awaited clearance from the Space Regulatory Authority. The committee agreed to summon the Pakistan Space Activities Regulatory Board on the matter.

Cybersecurity concerns dominated part of the discussion. The National Cyber Crime Investigation Agency (NCCIA) reported that fraudulent call centres and WhatsApp hacks had caused losses of Rs2–3 billion. Authorities said 63 illegal call centres had been raided, with 60 percent of complaints linked to financial fraud. Senators described the figures as alarming and urged stronger enforcement.

The Securities and Exchange Commission of Pakistan (SECP) briefed the committee on exploitative practices by digital loan apps, which previously charged up to 1,800 percent interest rates. Some borrowers who took loans as small as Rs5,000 for food were trapped in debt cycles. SECP said new rules have capped rates at 100 percent and restricted app access to personal data, removing 90 percent of fraudulent apps. Lawmakers demanded tighter oversight of non-banking financial companies.

By the end of the marathon session, senators concluded that Pakistan’s telecom sector faces widening gaps between policy goals and regulatory readiness. With unresolved disputes over PTCL’s audit, pending telecom mergers, spectrum litigation, and concerns over new entrants like Starlink, members warned that the fate of Pakistan’s 5G rollout remains uncertain.

“Without transparency and compliance, the country risks falling behind in telecom modernisation,” one senator remarked.

The meeting was attended by Senators Anusha Rahman Ahmad Khan, Pervaiz Rashid, Dr. Mohammad Humayun Mohmand, Dr. Afnan Ullah Khan, Saifullah Sarwar Khan Nyazee, Nadeem Ahmed Bhutto, senior IT Ministry officials, and representatives from PTA, FAB, NCCIA, SECP, and audit authorities.

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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