ISLAMABAD – Telecom giant Zong has lost its appeal as the Islamabad High Court (IHC) upheld the Pakistan Telecommunication Authority’s (PTA) directive, ordering the company to refund Rs2 billion to affected customers.
The case stemmed from a malpractice within the telecom industry, where telecom operators imposed a Rs 10 service fee on every Rs 100 recharge made via card. The court ruling referenced a previous Supreme Court decision declaring such charges on prepaid mobile cards to be illegal.
The Supreme Court had issued an interim order in 2018, invalidating the service fees on prepaid cards, later extending this order to post-paid users due to widespread complaints about excessive charges. Although telecom operators, including Zong, had assured the court they would stop charging such fees, Zong continued to collect the charges, arguing that it had not waived its right to do so.
With 49 million customers, Zong failed to comply with the PTA’s instructions, leading to a notice from the authority. Zong’s non-cooperation prompted the PTA to order the refund for all affected customers. The company’s appeal was subsequently dismissed by the IHC, further reinforcing the PTA’s position and mandating an unconditional refund to the customers.
This ruling is seen as a significant step towards ensuring greater transparency and fairness in Pakistan’s telecom sector, ultimately protecting consumers from unjustified charges.
