ISLAMABAD – Telecom giant Zong remains under pressure as the Pakistan Telecommunication Authority PTA moves to recover License Renewal dues from the telecom giant.
Sources familiar with development said PTA initiated enforcement proceedings against China Mobile Pakistan Limited (CMPak), the operator of Zong, over non-payment of a Late Payment Additional Fee (LPAF) amounting to $11.77 million.
The action was taken under Section 23 of the Pakistan Telecommunication Act, 1996. The dispute arises from the delayed renewal of a cellular license originally issued in 1990 to Paktel Limited — a company that was later acquired by CMPak.
The license was last renewed some decades back and was due for renewal again on October 23, 2019. In 2019, Pakistani government issued Policy Directive requiring all mobile operators to renew their licenses under newly established financial and regulatory terms. Disagreeing with the renewal fee, CMPak challenged the directive in the Islamabad High Court.
Amid legal battle, IHC ordered Zong to deposit 50pc of renewal fee as an interim measure. The company complied and paid approximately PKR 18.46 billion (around USD 238.6 million) in two installments during November 2019. However, because the payments were made after the official deadline, PTA levied an additional late fee of $11.77 million.
With enforcement now underway, the telecom giant could face further regulatory action if the outstanding amount is not cleared. This may include financial penalties, license restrictions, or even service disruptions
As of now, the company has option to appeal action or negotiate a settlement with the PTA to prevent any operational impact. Zong remains one of players in Pakistan’s highly competitive telecom market, and any escalation could have significant implications for both the company and its users.
