Pakistan’s Telecom Revenue Grows Despite Soaring Inflation

Pakistan’s mobile industry recorded an average annual revenue growth of 9% over the past five years, according to a document released by the Pakistan Telecommunication Authority (PTA). This growth was achieved despite high inflation and rising operational costs across the economy. Operator-wise figures show that Jazz and Ufone each posted 11% average revenue growth, Zong recorded 12%, while Telenor lagged behind at 3%. During the same period, average inflation stood at 17%, showcasing value erosion in the sector as industry growth failed to keep pace with rising prices and a challenging macroeconomic environment. In a written reply submitted to the Senate Standing Committee on Information Technology and Telecommunication, the PTA outlined its legal mandate to regulate telecom tariffs under the Pakistan Telecommunication (Re-organization) Act, 1996. The authority stated that it is empowered to determine operators with Significant Market Power (SMP) and regulate their tariffs to ensure competition and protect consumer rights. PTA clarified that Jazz has been declared an SMP operator in the retail mobile telecom market and is required to seek prior approval before implementing any tariff changes. Telenor, Ufone, and Zong, categorized as non-SMP operators, may revise tariffs based on their business decisions, although the regulator retains the authority to intervene if consumer interests are negatively impacted. The PTA has also notified the Mobile Tariff Regulations, 2025, and continues to cross-verify approved tariffs with publicly available information to ensure transparency and compliance. The regulator attributed recent tariff increases to worsening economic conditions. It noted that between March 2021 and May 2024, fuel prices surged by 158%, inflation rose by 83%, and the Pakistani rupee depreciated by 44% against the US dollar. During the same period, the policy rate increased by 214%, significantly raising financing costs for telecom operators and adding pressure on service pricing. PTA data further shows that Pakistan continues to offer some of the lowest mobile data prices both regionally and globally, with the cost of 1GB among the cheapest worldwide. However, the mobile sector operates with one of the lowest Average Revenue Per User (ARPU) levels in the region, standing at around USD 1.12 in early 2025. The authority noted that intense competition and low ARPUs limit pricing flexibility, even as regulatory oversight remains in place to protect consumer rights through complaint management systems and enforcement actions.