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he Auditor General of Pakistan has expressed concerns regarding the non-recovery of Rs. 389.219 million in outstanding payments owed by telecom operators to the Pakistan Telecommunication Authority (PTA).
The Audit Report for FY 2022-23 indicates that these dues remain unpaid despite the clear obligations outlined in the telecom operators’ license agreements concerning contributions to the Universal Service Fund (USF), Research & Development (R&D), Annual License Fees (ALF), and Annual Radio Frequency Spectrum Fees (ARSF).
According to the report, the license agreements require telecom operators to contribute 1.5 percent and 0.5 percent of their annual gross revenue to the USF and R&D, respectively, along with a 0.5 percent payment of their annual gross revenue as ALF, due within 120 days after the end of the financial year. Additionally, any late payments incur a penalty of 2 percent per month, worsening the outstanding dues owed to the PTA.
The report reveals that the PTA headquarters, under the Cabinet Division, recorded total receivables of Rs. 414.39 million from USF, R&D, ALF, ARSF, and penalties imposed on three mobile operators due to poor service quality. However, the PTA has only recovered Rs. 25.17 million, leaving a substantial balance of Rs. 389.218 million unpaid by telecom operators. Of the outstanding amounts, contributions for USF and R&D total Rs. 191.74 million, ARSF dues are Rs. 125.91 million, ALF dues amount to Rs. 40.80 million, and fines for poor service quality total Rs. 23 million.
The audit report criticized the PTA for its inadequate management of receivables, highlighting its failure to collect the outstanding amounts within the required timeframes. In response, the PTA acknowledged the issue but mentioned that some operators had deposited funds directly with the Ministry of Information Technology and Telecommunications (MoITT), and PTA was awaiting confirmation of these deposits. Furthermore, the PTA noted that legal challenges, including stay orders obtained by operators from the Islamabad and Sindh High Courts, had hindered further recovery efforts.
The Auditor General dismissed the PTA’s response, stressing that Rs. 389.219 million remains unpaid and called for immediate action. During a meeting of the Departmental Accounts Committee (DAC) on December 20, 2023, the DAC instructed the PTA to expedite its recovery efforts and pursue the pending court cases more rigorously, ensuring that all relevant facts and data are presented.
The audit recommends that the PTA fully adhere to the DAC’s directives, resolve the legal obstacles, and recover the outstanding balance from telecom operators to address the financial deficit. As of the audit’s conclusion, no significant progress on the matter had been reported.
