Senate Panel Exposes Massive Overcharging on SMS Services by Banks and Telecom Firms
Islamabad — A major overcharging issue involving SMS services has been exposed during a meeting of the Senate Standing Committee on Finance, revealing that consumers are being charged significantly higher rates than actual costs by banks and telecom companies.
During the session, it was disclosed that the actual cost of sending a single SMS is as low as **one to two paisas**, while consumers are being charged up to **Rs3.40 per message**. The committee termed the practice excessive and sought detailed records of the amounts collected from consumers under SMS charges.
Representatives of commercial banks stated that SMS charges were around **42 paisas in 2021**, but increased to **Rs3.40 by 2025**, blaming telecom companies for the hike. They argued that banks cannot reduce charges unless telecom operators lower their rates.
State Bank of Pakistan Deputy Governor Inayat Hussain informed the committee that banks collect approximately **Rs18.7 billion annually** from consumers under SMS fees, while they pay around **Rs25.6 billion** to telecom companies—indicating an additional burden of nearly **Rs7 billion**.
Senator Abdul Qadir criticized the pricing, noting that banks earn around **Rs400 billion annually** and questioning why such high charges are imposed on consumers for a service that costs only a few paisas.
Meanwhile, a telecom company representative rejected allegations of wrongdoing, stating that their business practices are transparent and have undergone multiple audits.
Senator Anusha Rahman also highlighted that both telecom companies and banks appear to be profiting from SMS charges, despite the minimal actual cost.
Committee Chairman Saleem Mandviwalla directed all stakeholders to provide one year of complete data on SMS charges. He stated that once the data is reviewed, appropriate measures will be taken to resolve the issue and determine the fair cost per SMS.
The revelations have sparked concerns over consumer rights and transparency in service charges, with further action expected after data analysis.
