Islamabad – Special Report, The Islamabad High Court (IHC) has upheld the Pakistan Telecommunication Authority’s (PTA) directive for Zong, a major telecom operator in Pakistan, to refund over Rs 2 billion to its customers.
Justice Mian Gul Hassan Aurangzeb dismissed Zong’s appeal against PTA’s order, confirming that the amount of Rs 2,028,038,584 was improperly collected from customers as service/maintenance/operational fee charges during the period April 26, 2019, to July 12, 2019.
Court Observations
The court noted that cellular operators were charging customers Rs 10 on every Rs 100 prepaid card under various service charges. Justice Aurangzeb emphasized that the Supreme Court had earlier ruled such charges to be invalid and illegal.
The IHC deemed Zong’s appeal against the PTA directive as “not maintainable” and instructed the company to comply with PTA’s mandate to refund the collected amount.
Refund Mechanism
PTA has directed Zong to:
Refund Rs 2 billion to affected customers in the form of balance without any validity restrictions.
Submit complete details of the service/maintenance charges recovered during the specified period.
Broader Concerns in the Telecom Sector
The telecom industry is also grappling with significant challenges due to heavy taxation. Recently, the Telecom Operators Association expressed concerns about new taxes introduced in the 2024 federal budget, warning of potential repercussions.
Industry Challenges
Telecom operators highlighted that two major market players are considering exiting Pakistan due to unresolved tax issues.
The sector contributed PKR 340 billion in taxes last year and attracted USD 15 billion in direct foreign investment over the years.
The telecom industry has cautioned that continued tax burdens and legal complexities might deter further foreign investment, impacting Pakistan’s digital infrastructure and economic growth.
This landmark judgment by the IHC is seen as a victory for consumer rights and a step towards ensuring accountability within the telecom sector.
