The Islamabad High Court (IHC) has upheld the Pakistan Telecommunication Authority’s (PTA) directive requiring Zong, a leading digital and telecommunication service provider in Pakistan, to refund over Rs 2 billion to its customers.
As reported by NNI, Justice Mian Gul Hassan Aurangzeb rejected Zong’s appeal against the PTA’s order, instructing the company to reimburse Rs 2,028,038,584 (over Rs 2.28 billion) collected from users as service, maintenance, and operational fees between April 26, 2019, and July 12, 2019.
The court noted that mobile operators, including Zong, had been charging Rs 10 as service or maintenance fees on every Rs 100 prepaid card recharge. Justice Aurangzeb highlighted that the Supreme Court had previously ruled such charges as neither valid nor legally enforceable.
IHC dismissed Zong’s challenge to the PTA decision, declaring it inadmissible. The court also ordered Zong to provide detailed records of all service and maintenance charges collected since April 24, 2019.
Reports revealed that Zong amassed Rs 2,028,038,584 from customers during the specified period. PTA directed Zong to refund the amount to subscribers as a balance credit without any validity restrictions.
Separately, the Pakistan Telecom Operators Association raised concerns over excessive taxes imposed in the 2024 budget. In a letter to the Chairman of the Standing Committee on Finance, Salim Mandviwala, telecom operators warned that unresolved tax issues could deter foreign investors and create legal challenges for the government.
The letter noted that two major market players were already planning to exit Pakistan. The telecom sector, which contributed PKR 340 billion in tax revenue last year and attracted USD 15 billion in direct investments to date, called for urgent resolution of these issues.
