Pakistan sees sharp 50% hike in mobile internet prices

ISLAMABAD: Millions of mobile users across Pakistan are waking up to the same disturbing reality, as internet packages have suddenly become much more expensive. What started as a small price adjustment has escalated into a full-scale hike, with some plans increasing by up to 50%.

The Ministry of Information Technology and Telecommunication has officially confirmed what millions of mobile users feared, cellular operators have increased mobile package prices by up to 50% during the current fiscal year. The shocking news has sparked widespread anger, as consumers are already struggling with the rising cost of living.

The ministry dismissed claims of a 150% hike in monthly tariffs, saying no package has gone from Rs600 to Rs1,500. However, it admitted that operators have gradually increased prices, ranging from around 20% to a staggering 50%.

Mobile Package price surge

• Rs1,500 → Rs1,799 (approx. 20% increase)

• Rs999 → Rs1,499 (50% increase)

The response, issued by Federal Minister Shaza Fatima Khawaja, blamed the steep increases on relentless macroeconomic pressure weighing heavily on the telecom sector.

The ministry highlighted a brutal reality for consumers, as fuel prices surged by 158% between March 2021 and May 2024, rising from Rs111.9 to Rs288.49 per litre. Inflation soared by 77% during the same period. Rupee plunged 44% against the US dollar, falling from Rs156.02 to Rs278.25. The policy interest rate skyrocketed from 7% to 22%, causing telecom operators to pay far higher financing costs.

Despite these alarming trends, the ministry revealed a troubling truth. Telecom revenue growth averaged only 9% per year over the last five years, while inflation averaged 17%, meaning the sector is actually losing value in real terms.