ISLAMABAD: The Senate Standing Committee on Finance raised serious doubts about increasing SMS banking alert costs on Monday because they questioned bank and telecom company officials about their reasons for charging customers nearly Rs. 300 per month to receive transaction alerts.
Senators received information during the briefing that showed that SMS alert costs have increased from 42 paisas in 2021 to Rs. 3.40 in 2025.
This represents an 800 percent rise, which occurred within four years. The average user receives three transaction alerts each day, which results in a monthly expense that approaches Rs. 300 per customer.
Banking and telecom representatives defended the charges by explaining that secure messaging services require secure delivery fees, which determine the cost of service delivery.
Inayat Hussain, deputy governor of the State Bank of Pakistan, told the committee that banks collect around Rs. 18.7 billion from customers on an annual basis through SMS alert services, while telecom operators receive Rs. 25.6 billion in payments from banks.
He pointed out that banks pay much higher prices to end users than the actual costs of SMS alert services, which they purchase through bulk SMS packages.
The system shows a major markup because of this situation. Government officials recognized that SMS alerts remain necessary for many users who need to secure their banking transactions because they lack access to smartphones, though mobile banking apps now provide free push notifications.
Lawmakers expressed concern about the excessive and unending cost increases, which they demanded through a complete review of telecom and banking fee systems to safeguard consumers from excessive expenses.
The committee has requested all banks and telecom companies to provide them with complete one-year pricing information, which will help them identify pricing trends and develop solutions that will decrease
