Business Recorder
ISLAMABAD: The Senate Standing Committee on Finance and Revenue on Wednesday expressed serious concern over steep increases in SMS charges imposed on banking customers and directed banks and telecom operators to submit a detailed cost breakdown. The meeting, chaired by Saleem Mandviwalla, reviewed mounting public complaints about excessive SMS alert charges. Responding to concerns regarding charges imposed by banks, Chairman of the Pakistan Banks Association Zafar Masud informed the panel that there are two types of charges. One is mandatory, imposed by the State Bank of Pakistan for banking SMS services, while the other is applied for services availed by customers with their consent. He further added that banks were not fully recovering their expenses and, in fact, faced losses on SMS alert services. He noted that while banks incur approximately Rs25.6 billion annually in payments to telecom companies, they generate only Rs18.7 billion in revenue, resulting in a loss of nearly Rs 6.9 billion. READ MORE: Senate body meets today: Telecom operators, banks will come under scrutiny He said that these are loss-making propositions for banks, and they are not happy with it. The committee was informed that banks are charging customers as much as Rs3.40 per SMS, a sharp increase from around Rs0.40 per message in 2021. The Committee was also informed that Telcos’ charges have increased by 88 percent since 2021. State Bank of Pakistan Deputy Governor Inayat Hussain informed the committee that banks are mandated under regulatory requirements to send transaction alerts to customers. When the committee asked if it included all charges, the official informed that these include all. Telecom companies charge around Rs0.60 per SMS from general users, but much higher rates from banks. The committee asked for bifurcation of all charges and services, so that how much are regulatory charges and how much are on consent. The SBP further highlighted that telecom operators charge banks nearly five times more than standard consumer rates, leading to an additional burden of around Rs7 billion annually on the banking sector. Members of the Senate body expressed concern over the disparity. Anusha Rahman argued that the actual cost of sending an SMS is only one to two paisas, alleging that both telecom companies and banks are profiting from the system. “SMS packages have become a hundred times more expensive,” she remarked. Telecom representatives defended the pricing structure, arguing that costs include secure delivery systems, infrastructure, and data protection. Mudassar Hussain of Jazz told the committee that an average banking customer receives around three SMS alerts daily, translating into approximately Rs300 per month, though customers are often charged closer to Rs400. The committee was further informed that around 80 percent of banking SMS traffic is routed through third-party aggregators, complicating pricing structures. Telecom officials maintained that their operations are transparent and audited, emphasizing that SMS services remain critical for customer security and fraud prevention. Despite the availability of free digital app notifications, officials said SMS alerts remain essential for financial security and regulatory compliance. Lawmakers questioned the disparity between actual SMS costs and consumer charges. Anusha Rahman remarked that the real cost of sending an SMS could be as low as one to two paisas, alleging that both banks and telecom companies were profiting excessively. The Chairman of the Committee directed the relevant stakeholders to submit detailed data on the number of customers affected by mandatory SMS banking charges, along with the total number of customers availing additional SMS services by consent. The Committee sought details regarding the charges each bank is paying to telecom companies. Chairman Mandviwalla directed both banks and telecom operators to submit detailed data on SMS costs, pricing structures, and revenues over the past year. “Once the data is available, the committee will determine a way forward to resolve the issue faced by consumers,” he said. He said that several complaints were received regarding overcharging for SMS services. The committee wanted to know what costs the customers are being charged by the banks and how much is being paid to telecom companies. The panel further discussed the issue of non-provision of the budget honorarium announced by the Finance Minister to the medical and PTV staff deputed at Parliament House during the budget session. The Chairman of the body recommended that the matter be immediately referred to the Finance Minister for approval; otherwise, the Committee warned of action against non-compliance. The matter of salary increments for university faculty members and professors was also taken up. The Committee was informed that university staff have been deprived of salary increases for the past ten years. The Committee termed this situation a clear injustice to the staff. The Minister of State for Finance and Revenue assured that the matter would be taken up with the relevant authorities and a report would be submitted within 15 days. The meeting was attended by Senator Muhammad Abdul Qadir, while Senators Farooq H. Naek and Anusha Rahman Ahmad Khan participated via Zoom. The Minister of State for Finance and Revenue, Chairman FBR, Presidents of Meezan Bank, HBL, and Habib Bank, along with representatives of telecom companies (TELCOs), were also present. Copyright Business Recorder, 2026
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