A meeting of the Senate Standing Committee on Finance revealed that banks are charging customers Rs3.40 per SMS, sparking concern over rising costs and lack of transparency.
Representatives from banks and telecom companies attempted to shift responsibility for the high charges onto each other during the session.
The committee has now sought one-year data on SMS charges collected from consumers to better understand the issue. Bank officials stated that SMS costs were as low as 42 paisas per message in 2021 but had risen to Rs3.40 by 2025. They argued that without a reduction in telecom tariffs, banks have limited room to lower charges.
Deputy Governor of the State Bank of Pakistan, Inayat Hussain, informed the committee that banks collect around Rs18.7 billion annually from customers in SMS fees, while paying telecom companies approximately Rs25.6 billion—resulting in an additional Rs7 billion burden on banks.
However, lawmakers questioned these claims. Senator Abdul Qadir pointed out that banks earn around Rs400 billion annually in profits, arguing that absorbing Rs7 billion should not be significant. He criticized the pricing disparity, asking why a service costing a few paisas is being sold for several rupees.
Telecom representatives defended their position, stating their operations are transparent and regularly audited. Senator Anusha Rahman noted that the actual cost per SMS for telecom companies ranges between one to two paisas, suggesting that commercial banks may also be profiting from the charges.
Committee Chairman Saleem Mandviwalla directed all stakeholders to submit detailed data on SMS charges. He said the committee would determine the actual per-message cost after reviewing the data and work toward a solution to address consumer concerns.
