Lawmakers raise alarm over excessive SMS charges as banks and telecom firms shift costs onto consumers.
A meeting of the Senate Standing Committee on Finance has uncovered what lawmakers described as large-scale overcharging by banks and telecom companies in Pakistan, particularly in SMS service fees.
Officials revealed that banks are collecting approximately Rs18.7 billion annually from customers under SMS alert charges. However, the actual cost of a single message is estimated to be between one to two paisa, while customers are being charged as much as Rs3.40 per message.
Committee members highlighted that banks are not only charging customers for transaction alerts but also passing on the cost of promotional and service messages. Annual service charges, including ATM cards and SMS alerts, have reportedly increased from Rs1,500 to Rs4,000, excluding taxes.
Representatives of banks argued that SMS charges have risen due to higher rates imposed by telecom companies, noting that the cost per SMS increased from Rs0.42 in 2021 to Rs3.40 in 2025. However, Inayat Hussain informed the committee that banks paid telecom companies Rs25.6 billion, including an excess payment of Rs7 billion.
Senator Abdul Qadir criticized the practice, stating that banks earning massive annual profits should absorb such costs instead of burdening consumers. Anusha Rahman also confirmed that commercial banks are generating significant revenue through these charges.
Committee Chairman Saleem Mandviwalla has sought detailed data from banks and telecom companies and said a revised pricing mechanism will be considered to protect consumers from exploitation.
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