Zong, a leading telecom provider in Pakistan, is facing regulatory pressure as the Pakistan Telecommunication Authority (PTA) initiates action against it for not paying the Late Payment Additional Fee (LPAF) amounting to $11.77 million.
The issue stems from a delayed renewal of the telecom license originally granted to Paktel Limited in the 1990s, later acquired by China Mobile Pakistan (CMPak). Although the license was previously renewed in 1997 and 2004, the latest renewal became due in October 2019. At that time, the government issued a policy directive outlining the financial and regulatory framework for license renewals.
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Disagreeing with the policy, CMPak filed a writ petition in the Islamabad High Court, challenging the renewal fee. The court directed CMPak to pay 50% of the fee as an interim measure, which the company did, submitting Rs18.46 billion in two installments in November 2019. However, due to the delay in payment, PTA imposed a late fee of $11.77 million.
PTA has now launched enforcement action over the unpaid amount. If CMPak fails to clear the dues, it could face serious regulatory consequences such as fines, license restrictions, or even disruption of services. Nonetheless, CMPak still has the option to challenge the proceedings or seek a resolution through negotiations.
Additionally, Zong previously lost a legal case where a court ordered it to refund Rs2 billion to customers. The ruling upheld PTA’s stance that maintenance and service charges deducted from mobile cards between April and July 2019 were illegal. Despite assurances to stop the practice, Zong had contested the refund but was ultimately overruled.
